Jamie Dimon, who is the CEO of the largest American bank, took another hit at bitcoin bulls this week, saying that the crypto might not be limited in quantity after all.
“I will just challenge you all to one more thing: how do you know Bitcoin stops at 21 million? Have you all read these algorithms? You people believe it? I don’t know, I have always been skeptical of stuff like that,” said the bank CEO while speaking at the Institute for International Finance event on October 11.
The price of bitcoin was staying near $57,000 recently.
Dimon was questioning the fundamentals of bitcoin: a 21 million limitation that gives the crypto the appeal of have a controlled supply.
But the bitcoin code certainly notes that the maximum amount of coins is around 21 million. In theory, the open source code of bitcoin would allow for alterations to the cap, but it would need a large share of Bitcoin “nodes” to agree to the change.
The 21 million coin limit serves as a big pillar of the crypto’s value proposition, making it not likely that the community would ever agree to such a change.
‘I won’t stop our people from banking it’
Dimon said that he still believes bitcoin is “worthless,” but also said his ideas on cryptos don’t decide his company’s approach to giving crypto products. The bank CEO said that his bank can give clients “legitimate” access to the sector if they want (although the bank is not offering custody services).
The CEO’s comments echo his statements from May, when he said the booming asset was like the business of banking weed.
“My own advice is to stay away from it. This does not mean our clients do not want it,” Dimon said in May. “This goes to how you must run a company. I don’t use marijuana but if you legalize it, I won’t stop our customers from banking it.”
Even though JPMorgan Chase is not giving crypto custody right now, the bank is messing around with blockchain using its “Onyx” business. The bank is creating a network that it started to trade smart contracts with other top banks.
Author: Steven Sinclaire