Jamie Dimon, JPMorgan Chase CEO: ‘I Probably Shouldn’t Say Any More About Cryptocurrency’

In an interview with the Harvard Business Review (July–August 2018 Issue), Jamie Dimon, the Chairman and CEO of JPMorgan Chase, the largest bank in the U.S. said that he "probably shouldn’t say any more about cryptocurrency" when asked for his view on cryptocurrency.

As part of the interview, 62-year-old Dimon, who has been CEO of JPMorgan (JPM) for over 12 years, was asked what he considers to be the chief competitive threat to the bank. He replied:

"The biggest potential disruption to our business is new forms of payment. You have PayPal, Venmo, Alipay, and more. These companies are doing a good job of embedding basic banking services in their chats, their social, their shopping experience."

He was also asked by Harvard Business Review (HBR) for his current view on cryptocurrency, and reminded of what he had said about Bitcoin in the past, before letting him answer the question. In case you have not heard what Dimon has said about Bitcoin, or you have forgotten, here is a quick recap:

  • According to Bloomberg, on 13 September 2017, an investor conference in New York, he called Bitcoin "a fraud", saying that it was “worse than tulip bulbs." And if a JPMorgan trader began trading in Bitocin, he said: “I’d fire them in a second. For two reasons: It’s against our rules, and they’re stupid. And both are dangerous.” He didn't stop there, going on to say: "If you were in Venezuela or Ecuador or North Korea or a bunch of parts like that, or if you were a drug dealer, a murderer, stuff like that, you are better off doing it in bitcoin than U.S. dollars. So there may be a market for that, but it’d be a limited market.”
  • On January 2018, in an interview with FOX Business's Maria Bartiromo, said that he regretted his previous comments about Bitcoin, and expressed his faith in blockchain technology: "The blockchain is real. You can have crypto yen and dollars and stuff like that. ICO's you have to look at individually. The bitcoin to me was always what the governments are gonna feel about bitcoin as it gets really big, and I just have a different opinion than other people. I'm not interested that much in the subject at all.”

Coming back to his recent interview with HBR, Dimon had this to say about crypto:

"I probably shouldn’t say any more about cryptocurrency. But it’s not the same as gold or fiat currencies. Those are supported by law, police, courts. They’re not replicable, and there are strictures on them. Blockchain, on the other hand, is real. We’re testing it and will use it for a whole lot of things."

Here, it is important to note that the blockchain technology Dimon is talk about is Quorum, an enterprise-focused version of Ethereum.

It seems that Dimon has recognized the silliness of his initial very negative stance on Bitcoin since he has gone from calling it a fraud to saying he is not interested in Bitcoin to realizing the wisdom of staying silent on a subject that he clearly does not understand well, even though within JPMorgan people are aware of the important of Bitcoin and other cryptocurrencies.

 

Featured Image Credit: Courtesy of JPMorgan Chase

Weiss Cryptocurrency Ratings Gives Bitcoin an A-Rating

Francisco Memoria

Weiss Cryptocurrency Ratings, a division of the independent financial rating agency Weiss Ratings, has given Bitcoin an A-rating, pointing out its “excellent” adoption and potential rewards, as well as its “good” technology.

According to Weiss Cryptocurrency Ratings’ website, the flagship cryptocurrency’s ratings when it comes to technology and adoption is an A, while the rating for its risk/reward potential is a B+. As a result, BTC got an ‘A-‘ from the agency.

This, it’s worth pointing out, is the best rating the agency is currently giving any cryptocurrency. Ethereum’s ether comes in second with a ‘B+’ as while its technology and adoption are extremely positive, its risk/reward grade is a ‘C’. Behind it ate litecoin and XRP, both with a “B-.”

Weiss Cryptocurrency Ratings' rate for top cryptos

Notably, Weiss Ratings gave bitcoin an initial score of ‘C0’ back in January of 2018, when the flagship cryptocurrency was close to its all-time high near $20,000. That year BTC went through an 84% drop to $3,200 in December, before it started to recover.

The cryptocurrency is currently trading at $11,450 after being rejected from the $13,000 mark. Over time bitcoin’s grade went up, and in March of this year it got an “A” grade for technology and adoption, along with XRP and EOS.

Bitcoin’s grade has likely been rising both thanks to its price’s performance, and thanks to various improvements being made on the network. Upgrade likes Segregated Witness (SegWit) and transaction batching helped unclog its blockchain, while the development of its layer-two scaling solution has been advancing at a rapid pace.

All of this has been helping the Bitcoin network’s adoption grow. As covered, using blockchain data to look at transaction inputs and transaction outputs, it’s clear bitcoin usage is close to its all-time high, even though the price is still far from $20,000.

Moreover, Bitcoin’s hashrate hit an all-time high of over 74.5 million terahashes per second earlier this month, at a time in which its decentralization has been standing out as no single mining pool controls over 20% of the network.

Taking all of this into account various cryptocurrency experts have made price predictions so far this year. Where bitcoin’s price is going, however, is anyone’s guess. It’s worth pointing out Weiss Cryptocurrency Ratings, back in January, claimed “bitcoin will again rise up and head for new all-time highs.”