Jamie Dimon, CEO of investment banking giant JPMorgan Chase, once again criticized Bitcoin on the 17th, stating that Bitcoin has no practical use and its applications include sex trafficking, tax evasion, and money laundering. He also expressed doubts about the claim that the supply of Bitcoin is limited to 21 million coins, suggesting that Satoshi Nakamoto, the creator of Bitcoin, would change the supply limit.
Jamie Dimon has always been a vocal critic of Bitcoin. During an interview with CNBC at the World Economic Forum in Davos, Switzerland on Wednesday, he stated that this would be his last time discussing Bitcoin. He criticized Bitcoin’s use in sex trafficking, tax evasion, money laundering, and other illicit activities. However, he acknowledged that blockchain is a legitimate technology and that JPMorgan Chase also utilizes it.
Dimon mentioned that there are two types of cryptocurrencies. One type is cryptocurrencies that incorporate smart contracts, allowing users to buy and sell real estate and transfer data. He expressed support for tokenization and the potential value of such applications. This aligns with recent comments made by Larry Fink, CEO of BlackRock, who asserted that tokenization of all financial assets will be the next trend.
However, Dimon referred to the second type of cryptocurrency as “cryptocurrencies with no use.” He likened Bitcoin to a pet rock and advised against its use. Nevertheless, he also stated that he defends people’s right to use Bitcoin, as the United States is a free country.
The term “pet rock” refers to a crazy idea conceived by American businessman Gary Dahl in the 1970s. He sold cheap stones imported from Mexico in a paper cage, marketing them as perfect pets. Surprisingly, he sold millions of them.
When discussing the issue of limited Bitcoin supply, Dimon expressed skepticism about the claim that the supply is limited to 21 million coins. He further stated:
Dimon’s comments faced widespread criticism in the cryptocurrency community. On the one hand, his statements were generally deemed inaccurate. On the other hand, he mispronounced Satoshi Nakamoto as “Satashi.” In fact, although Nakamoto created Bitcoin, he does not have control over the Bitcoin blockchain or miners.
The maximum supply of Bitcoin is indeed 21 million coins, which is hardcoded into its source code. Any modifications would require consensus among miners. However, given that miners have benefited from the current mechanism for years, they are unlikely to make adjustments.
Furthermore, any changes that do not achieve consensus would result in a fork in the Bitcoin blockchain, creating two separate chains instead of creating a minority consensus chain. Bitcoin Cash (BCH) was created in 2017 with the support of a minority of miners and remains separate from Bitcoin.
Dimon’s claim that Bitcoin will be eradicated is also inaccurate. Bitcoin supply can only be destroyed when all Bitcoin holders decide to transfer their funds to an address that is irrecoverable or burn the funds. Although a significant portion of Bitcoin supply has been sent to such addresses, the burning of a portion would only proportionally increase the value of Bitcoin still in circulation.
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