Bitcoin is a Ponzi scheme and fraud— JP Morgan CEO

Jamie Dimon, Chief Executive Officer (CEO) of a global banking giant, JP Morgan Chase, has referred to Bitcoin as a Ponzi scheme.

This has sparked controversies in the crypto and financial world.

According to BeinCrypto, the recent comment by the banking executive reiterated his long-standing criticism and skepticism of cryptocurrencies like Bitcoin.

Dimon’s criticism and campaign against Bitcoin stem from his belief that Bitcoin lacks intrinsic value. Therefore, he postulates that Bitcoin cannot act as a viable currency.

• “If you mean crypto like Bitcoin, I’ve always said it’s a fraud,” he stated during the Bloomberg interview.

His criticism of Bitcoin didn’t start recently as he gained notoriety in the past for saying Bitcoin was a fraud and would crash.

For instance, during a US Senate hearing in late 2023, Dimon stated that he would close down crypto if he were the government.

Despite his criticism of cryptocurrencies, Jamie Dimon recognizes blockchain technology as a valuable concept, citing features like smart contracts as valuable.

• “To the extent, crypto is accessing certain blockchain things, that might have some value,” he stated.

His comments highlight the heated debate behind cryptocurrencies in the financial world. Crypto enthusiasts laud its decentralized nature, capacity to act as an inflation hedge, and role in new finance.

Crypto detractors however cite its massive volatility and a recurring case of fraud and exploitation as deal breakers for them.

What to know 

Smart contracts that Dimon finds valuable are codes in blockchain that serve as self-executing agreements and automatically trigger actions when predetermined conditions are met. They are potentially used in other areas like supply chain management, financial transactions, and property ownership.

• Dimon is the CEO of JPMorgan Chase & Co, a leading global financial services firm with $2.6 trillion in assets and operations worldwide. He has retained the position since 2006 and has remained a strong critic of cryptocurrencies.