Bitcoin, ethereum and other major cryptocurrencies have collapsed in the wake of a brutal Federal Reserve “hammer” that could trigger a collapse worse than 2008.
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Bitcoin’s price plunged below $ 20,000 this month, pushed down by a stern crypto warning from the Biden administration. Meanwhile, Ethereum’s price has experienced even more drastic drops after its groundbreaking update triggered 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, which you call currency, like bitcoin,” Dimon said during Congressional testimony this week, he was reported by Bloomberg. “They are decentralized Ponzi schemes” and “dangerous”, she added.
Earlier this year, following a Chinese cryptocurrency ban in 2021, executives of China’s Blockchain-based Service Network (BSN), a state initiative designed to promote the commercial adoption of blockchain technology, also called bitcoin. and cryptocurrencies a Ponzi scheme, declaring it “the largest in human history”.
Dimon’s cryptocurrency critique echoes similar comments made by Microsoft
The bitcoin and cryptocurrency market surged to $ 3 trillion last year, compared to well under $ 1 trillion in 2020, and then collapsed in 2022, plunging the nascent cryptocurrency industry into turmoil, bringing the price of some cryptocurrencies to zero and triggering an explosion of regulatory interest in the market.
“The idea that [bitcoin and crypto is] good for anyone is unbelievable, “Dimon said, pointing to cryptocurrency’s role in ransomware attacks, sex trafficking and money laundering. Dimon famously called bitcoin a” fraud “in 2017 before somehow returning to his comments. In 2014, he labeled bitcoin “a terrible store of value.”
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However, Dimon also claimed to have accepted “properly regulated” stablecoins – cryptocurrencies pegged to traditional currencies – as well as blockchain-based decentralized finance (DeFi) which replaces banks with algorithms that have some utility and declaring JPMorgan “a great user. of blockchain. “
JPMorgan has spearheaded Wall Street’s adoption of cryptocurrencies and blockchains, allowing its wealth management clients to purchase bitcoin, ethereum, and a handful of other cryptocurrencies, creating its own blockchain and cryptocurrency JPM coin and becoming the first major bank to getting into the virtual metaverse earlier this year, something some think could help popularize blockchain-based digital assets.