Bitcoin ‘has no intrinsic value’ – JPMorgan boss

The cryptocurrency is “heavily” used for unlawful activities, Jamie Dimon has claimed.

JPMorgan Chase CEO Jamie Dimon has argued that Bitcoin lacks intrinsic value and is widely used for illicit activities, adding that he does not “feel great” about the leading cryptocurrency.

Dimon, a longstanding critic of crypto, compared investing in Bitcoin to smoking, saying that while individuals have the right to do so, it is not advisable. “I applaud your ability to want to buy or sell it. Just like I think you have the right to smoke, but I don’t think you should smoke,” he remarked in an interview with CBS on Sunday.

“Bitcoin itself has no intrinsic value. It’s used heavily by sex traffickers, money launderers, ransomware,” he stated.

Despite his critical stance on Bitcoin, Dimon acknowledged the potential of crypto and blockchain technology. He noted that JPMorgan is already utilizing blockchain for various applications, and recognized the legitimacy of stablecoins – digital currencies tied to other assets. “Blockchain is real. It’s a technology. We use it. It’s going to move money. It’s going to move data. It’s efficient.”

Dimon has previously expressed skepticism over Bitcoin. In the past, he has referred to it as a “fraud” and a “decentralized Ponzi scheme.” However, under his leadership, JPMorgan bank has launched its own digital coin, JPM Coin, and has been involved in blockchain-based projects to enhance payment systems.

Dimon’s comments follow a surge in Bitcoin’s value. In 2024, its price jumped 121%, reaching an all-time high of $108,135 in December. Since then, the cryptocurrency has experienced a correction, briefly falling below $90,000 in early January. As of Tuesday, Bitcoin had rebounded and was trading at more than $96,000.

Created in 2009, Bitcoin allows people to send and receive money over the internet without relying on traditional banks or governments. The price is primarily affected by supply, market demand, availability, competing cryptocurrencies, and investor sentiment. Bitcoin’s supply is limited – there is a finite number of Bitcoins that can be mined, and the final coins are projected to be mined in 2140. It is often referred to as “digital gold” because of its limited supply and store-of-value properties.

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