During an interview with Bloomberg journalist Emily Chang, Jamie Dimon reiterated his stance that the first-ever cryptocurrency possesses characteristics that align with a typical financial pyramid.
Interestingly, Dimon did recognize the practical value of blockchain technology and smart contracts, suggesting that these elements of cryptocurrencies have genuine utility within the digital industry.
The business tycoon emphasized that the current virtual coin market is undergoing a classic “bubble” formation. He noted that investors, caught up in a bull market, tend to disregard warning signs that could indicate an impending bubble burst.
JPMorgan analysts also share a similar viewpoint, predicting a potential drop in the Bitcoin price to $42,000 following the upcoming halving and anticipating a decline in the mining industry as several mining companies exit the market.
Dimon further advised against investing in digital gold, asserting that the asset carries significant risks and exhibits excessive volatility.
Notably, in a previous statement at the Australian Financial Review summit, Dimon declared that he personally would not invest in Bitcoin but respects the rights of others to do so.