Jamie Dimon, Warren Buffett Tell Investors to “Just Beware” of Bitcoin

Francisco Memoria
  • JP Morgan's Jamie Dimon and Berkshire Hathaway's Warren Buffett are known bitcoin bears.
  • During a joint interview, they recently told investors to "just beware" of the cryptocurrency.

JP Morgan’s chief executive Jamie Dimon and billionaire investor Warren Buffett are two well-known bitcoin bears who, on numerous occasions, slammed the flagship cryptocurrency. During a joint interview on CNBC’s “Squawk Box,” the critics told investors to “just beware.”

In the joint interview, CNBC’s host asked the two Wall Street giants which one of them hated bitcoin more. Buffett, the CEO of Berkshire Hathaway, was the first one to answer, saying:

“I set a high standard. I don’t know whether Jamie can top me or not.”

Warren Buffett

Warren Buffett seemingly criticizes the flagship cryptocurrency whenever he can. In the past, he’s called it a “mirage,” and argued that buying it isn’t investing. Moreover, the billionaire investor stated cryptocurrencies will come to a “bad ending,” and that bitcoin itself is a “real bubble.”

Last month, during Berkshire Hathaway’s annual shareholder meeting, Buffett and the company’s vice chairman Charlie Munger slammed bitcoin. While the chief executive compared the cryptocurrency to “rat poison squared,” the vice chairman compared it to “turds,” and “dementia.”

JP Morgan CEO Jamie Dimon replied to CNBC’s question right after Warren Buffett, stating:

“I don’t want to be a Bitcoin spokesman, you know. Just beware.”

Jamie Dimon

Dimon was notably one of bitcoin’s biggest critics. In 2015 he called the cryptocurrency a “waste of time,” while last year he labeled it a “fraud.” While facing backlash, he revealed he regretted his comments on bitcoin, and as its price grew claimed he no longer wanted to talk about it.

At the time, the Wall Street personality even claimed he would “fire in a second” any JP Morgan trader found to be engaging in cryptocurrencies, as it was both against the financial institution’s rules, and was “stupid.”

As CryptoGlobe covered, last month a former executive director at JP Morgan said that major banks are going to enter the crypto space “sooner than people probably think.” The financial institution, in late 2017, labeled cryptocurrencies a threat to its business model in an annual reported filed with the SEC.

Bitcoin's Lightning Network Growth Accelerates as Its Capacity Surpasses $3 Million

Francisco Memoria

Bitcoin’s layer-two scaling solution, the Lightning Network (LN) has recently seen its capacity surpass the $3 million mark, as it now has a capacity of 773.7 BTC. The network now has 7,185 nodes, and 34,180 open payment channels.

According to available data, the Lightning Network was launched little over a year ago, and it took months for its capacity to reach $100,000, even though at the time BTC was trading close to its all-time high.

Since then, its growth has been accelerating, according to BitcoinVisuals. In November of last year its capacity surpassed $1 million, and in December it managed to briefly break thoruhg $2 million before falling back down. Since then, it has kept on growing.

Bitcoin's Lightning Network capacity growthSource: Bitcoin Visuals

The average capacity per channel is currently at $92, and currently every node has an average of 18 channels. Average node capacity is at little over $1,500, or 40 million satoshis. While its widely accepted the LN is still in its early days, its explosive growth shows the cryptocurrency community is betting on it.

It has partly kept on growing thanks to the attention it has been receiving. Last month, Twitter CEO Jack Dorsey backed a LN-based ‘trust game’ that involved users sending each other a ‘torch’ worth a continuously growing amount of satoshis.

Soon after the LN torch reached Fidelity Digital Assets, which then passed it along to HBS Blockchain and Crypto Club, a student club at Harvard Business School. The torch has also passed Binance CEO Changpeng Zhao, TRON’s Justin Sun, and others.

Developers building on the network have also contributed to its growth. As CryptoGlobe covered Koala Studio, an online gaming platform, has recently launched a title called Lightning Chess. It’s a chess game that lets users undo moves, extend timers ,and wager bets using the LN.