Bitcoin, ethereum and different main cryptocurrencies have crashed again in the wake of a brutal Federal Reserve “sledgehammer” that could trigger a crash worse than 2008.
The bitcoin value has plummeted below $20,000 this month, pushed decrease by a stark Biden administration crypto warning. In the meantime, the ethereum value has recorded even steeper declines after its game-changing improve sparked a surprise U.S. Securities and Exchange Commission (SEC) alert.
Now, JPMorgan chief govt Jamie Dimon has echoed Bill Gates And Warren Buffett in branding bitcoin, ethereum and different cryptocurrencies “decentralized Ponzi schemes.”
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“I’m a serious skeptic on crypto tokens, which you name foreign money, like bitcoin,” Dimon mentioned throughout congressional testimony this week it was reported by Bloomberg. “They’re decentralized Ponzi schemes” and “harmful,” he added.
Earlier this yr, following a China crypto ban in 2021, executives at China’s Blockchain-based Service Community (BSN), a state-backed initiative designed to drive the industrial adoption of blockchain expertise, also called bitcoin and cryptocurrencies a Ponzi scheme—declaring it “the biggest in human history.”
Dimon’s crypto criticism echos comparable feedback made by Microsoft
The bitcoin and crypto market final yr soared to an eye-watering $3 trillion, up from effectively below $1 trillion in 2020, solely to crash again via 2022—plunging the nascent crypto trade into turmoil, sending the value of some cryptocurrencies to zero and triggering a burst of regulatory curiosity out there.
“The notion that [bitcoin and crypto is] good for anyone is unbelievable,” Dimon mentioned, pointing to cryptocurrency’s function in ransomware assaults, intercourse trafficking and cash laundering. Dimon famously known as bitcoin a “fraud” in 2017 earlier than considerably strolling again his feedback. In 2014, he branded bitcoin “a horrible retailer of worth.”
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Nonetheless, Dimon did additionally say he is accepted “correctly regulated” stablecoins—cryptocurrencies which might be pegged to conventional currencies—in addition to blockchain-based decentralized finance (DeFi) that replaces banks with algorithms have some use and declaring JPMorgan “an enormous consumer of blockchain.”
JPMorgan has spearheaded Wall Avenue’s adoption of crypto and blockchain, permitting its wealth administration shoppers to purchase bitcoin, ethereum and a handful of different cryptocurrencies, creating its personal JPM coin blockchain and cryptocurrency and turning into the primary massive financial institution to step into the digital metaverse earlier this yr—one thing some suppose may assist popularize blockchain-based digital property.