Bitcoin, ethereum and other major cryptocurrencies have fallen back in the wake of a brutal Federal Reserve “sledgehammer” that could trigger a crash worse than 2008.
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The bitcoin price fell below $20,000 this month, pushed lower by a sharp Biden administration crypto warning. Meanwhile, the ethereum price recorded even sharper declines after its game-changing upgrade prompted a surprise warning from the US Securities and Exchange Commission (SEC).
Now JPMorgan CEO Jamie Dimon has echoed Bill Gates and Warren Buffett in branding bitcoin, ethereum and other cryptocurrencies “decentralized Ponzi schemes.”
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“I’m a big skeptic about crypto tokens, what you call currency, like bitcoin,” Dimon said during congressional testimony this week, reported by Bloomberg. “They are decentralized Ponzi schemes” and “dangerous,” he added.
Earlier this year, following a Chinese crypto ban in 2021, executives at China’s Blockchain-based Service Network (BSN), a state-backed initiative designed to promote the commercial adoption of blockchain technology, also called bitcoin and cryptocurrencies, called it a Ponzi scheme. – scheme to drive, declared – it declares “the largest in the history of man.”
Dimon’s crypto criticism echoes similar comments made by Microsoft
The bitcoin and crypto market soared to a mouth-watering $3 trillion last year, from well below $1 trillion in 2020, only to fall back through 2022 – throwing the nascent crypto industry into turmoil, the price of some crypto sent currencies to zero and caused a burst of regulatory interest in the market.
“The idea that [bitcoin and crypto is] good for anyone is incredible,” Dimon said, pointing to cryptocurrency’s role in ransomware attacks, sex trafficking and money laundering. Dimon called bitcoin a “fraud” in 2017 before walking back his comments somewhat. In 2014, he called bitcoin as branded a “terrible. store of value.”
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However, Dimon also said he accepts “properly regulated” stablecoins — cryptocurrencies linked to traditional currencies — as well as blockchain-based decentralized finance (DeFi) that replaces banks with algorithms has some utility, stating that JPMorgan is a big user of blockchain. .”
JPMorgan has spearheaded Wall Street’s adoption of crypto and blockchain, enabling its wealth management clients to buy bitcoin, ethereum and a handful of other cryptocurrencies, creating its own JPM Coin blockchain and cryptocurrency and becoming the first major bank to step into the virtual metaverse earlier. year — something some think could help popularize blockchain-based digital assets.