The rise of cryptocurrencies has been one of the talking points in the past few years. Cryptocurrencies have transformed how we view finance bringing cheap, fast, and secure cross-border transactions.
However, the success of crypto has not been without its criticism from the traditional finance sector. This is unsurprising because crypto is seen as a threat to financial institutions, and chief among the skeptics is Jamie Dimon, the CEO of American banking juggernaut JPMorgan Chase.
Dimon recently stated that investing in Bitcoin was a worthless effort, similar to his previous comments on the leading crypto asset. The Bank chief does not view crypto as a serious investment noting that governments globally should regulate Bitcoins and compared its trading to smoking cigarettes.
Crypto Community Reacts to Dimon Statements
As usual, the crypto committee quickly reacted to Dimon’s latest statement with the usual aplomb. Bitcoin maximalists were quick to point out that the value of bitcoin over time had outlasted most of the negative predictions from bankers and traders.
Michael Saylor, CEO of Microstrategy, also pointed out that Dimon and bankers are frustrated about the increasing value of Bitcoin because they don’t understand how it works or what it does. In a tweet, he asked the question, “Do you understand Bitcoin”
Dimon a Known Crypto Critic
In 2017, Dimon courted controversy when he classified Bitcoin as fraud and threatened to fire employees who held crypto assets. This was during the initial bullish run when the price of Bitcoin spiked from $3,000 to $18,000 within the space of a year.
His comments proved to be false as Bitcoin adoption increased, with several financial institutions adding it to their portfolio. In addition, Bitcoin’s market cap also hit an all-time mark of $2 trillion between February and April 2021.
Dimon has become a running joke in the crypto industry, with many believing that his comments contradict his bank’s actions. JPMorgan has worked towards developing its native blockchain network and is reportedly considering offering custodial services.
This latest tirade on cryptocurrencies from Dimon is despite the recent moves of JPMorgan Chase towards adopting cryptocurrencies. JPMorgan became one of the first banks in the US to offer investments in Bitcoins and crypto assets to clients in July 2021.
This service was offered in collaboration with New York Digital Investment Group (NYDIG), an organization focused on crypto custody. NYDIG also documented JPMorgan when applying for a Bitcoin ETF license with the US Securities and Exchange Commission (SEC).
Crypto Market Silencing Critics
Apart from Dimon, other notable critics include European Central Bank president Christine Lagarde and financial analyst Peter Schiff. However, the crypto market has silenced the concerns of these traditional financial experts as more companies are adopting cryptocurrencies.
The 2021 bullish run was buoyed with the likes of Tesla purchasing crypto assets and PayPal adding crypto services in late 2020. Furthermore, despite the market dip in May, there has been a resurgence in the past few weeks.
Bitcoin and Ethereum hit new all-time highs in early November, and the market appears to be trending in the right direction. Crypto projects have also become an attractive prospect for venture capitalists, with funding rounds taking place at an unprecedented rate.
The recent move of several projects to Proof-of-Stake consensus has also solved the long-age problem of energy consumption by crypto projects. In addition, there is a growing wave of regulation from centralized crypto exchanges with the goal of ensuring that crypto is no longer the preferred asset for criminals and persons with questionable purposes.
Taking a look at blockchain technology is similar to the web during the early 90s when there was stiff opposition to the new technology. As a result, several companies that refused to innovate were left behind and overtaken by forward-thinking firms.
Crypto is the future of finance and will be deployed in different sectors in the coming years. Most of the critics will slowly but surely move towards accepting bitcoins and cryptocurrencies. It remains to be seen whether Dimon will be among the top financial personalities that will eventually endorse the potentials of cryptocurrencies.