JPMorgan Chase Chairman and CEO Jamie Dimon has revealed he personally believes that the flagship cryptocurrency bitcoin is “worthless,” and questioned its 21 million supply cap while speaking at the Institute for International Finance event.
During the event, Dimon questioned the limited supply of bitcoin by suggesting that most of its users did not check its open-source code to verify whether it was set to 21 million, saying:
I’ll just challenge the group to one other thing: how do you know it ends at 21 million? You all read the algorithms? You guys all believe that? I don’t know, I’ve always been a skeptic of stuff like that.
The CEO’s comments came as the price of bitcoin hovers around $57,000 as it progressively moves closer to its all-time after trading within the $40,000 to $45,000 range for a few weeks. Bitcoin’s code, it’s worth noting, notes the maximum number of BTC that will ever exist is limited to 21 million.
In theory, changing bitcoin’s supply cap is possible, but it would require consensus among network participants to do so. As it stands, most if not all BTC users seem to like the 21 million cap, which was set by Bitcoin creator Satoshi Nakamoto.
During the event, Dimon also noted that he personally doesn’t believe BTC has any value, but added JPMorgan is willing to serve clients looking for cryptocurrency exposure, saying:
I personally think that Bitcoin is worthless. Our clients are adults, they disagree, that’s what makes markets, so if they want to have access to buy yourself Bitcoin, we can’t custody it but we can give them legitimate, as-clean-as-possible access.
The bank is currently not offering crypto custody services, while competitors including the oldest bank of the United States, Bank of New York Mellon (NYSE: BK), already offer crypto custody services.
As CryptoGlobe reported, last month Dimon seemed to grudgingly admit that the price of bitcoin could reach $400,000 over the next five years, although he noted he personally does not care about the crypto or its performance.
At the event Dimon echoed previous comments he made stating that BTC will be regulated, arguing that “no matter what anyone in the room thinks,” governments will eventually regulate cryptocurrencies and blockchain technology.
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