JP Morgan Chase is known to have reservations with Bitcoin and the general idea of decentralization. In the past, JP Morgan ridiculed Bitcoin and cryptocurrencies in general by saying that these are worthless instruments of investment and are not to be called assets at all. Then the crypto boom happened, and adoption rates went over the sky; every bank, financial entity, and mainstream media suddenly opened their arms to welcome Bitcoin and the fellow cryptocurrencies and taking the pressure JP Morgan Chase had to do too.
Recently JP Morgan has also activated its services regarding crypto investment and trading for lead customers, so the question is why the sudden change of heart all over again? The CEO of JP Morgan Chase, Jamie Dimon, said that Bitcoin is worthless during the institute of international finance annual membership meeting. He said that he personally thinks Bitcoin has no value and is just a joke of a cryptocurrency.
When asked about the scarcity of the flagship cryptocurrency as it is capped at 21 million coins only, he said that no one knows for sure if the 21 million is the correct number or does it go beyond it. He also implied that the algorithms for cryptocurrency are a bit overzealous, and he has always been a skeptic about digital stuff like that. When asked that JP Morgan Chase allows its elite clients to have exposure with Bitcoin and other cryptocurrencies so why the CEO of the bank is not at ease with this concept? He immediately compared investing in the crypto market to trading cigarettes.
JP Morgan Compares Bitcoin with Smoking
He said that smoking is bad for your health, but adults do it anyway and most of our clients are adults, and that is why we allow them to have suitable exposure to the crypto market. In 2017 the CEO said that anyone who touches Bitcoin or trades in it would be fired immediately; it doesn’t matter how big a trader he has been as his career will come to an end. The sudden turnover of the bank was to do with the peer pressure of other financial institutions taking the lead with Bitcoin. It seems like the overall attitude of the bank regarding Bitcoin has not changed even a bit all those years.