JPMorgan CEO Jamie Dimon Renews Criticism of Bitcoin, Calls It a ‘Ponzi Scheme’

JPMorgan Chase CEO Jamie Dimon reignited his criticism of Bitcoin, labeling the cryptocurrency a “Ponzi scheme” during an interview on CBS News’ Sunday Morning. Dimon dismissed Bitcoin as “useless as a pet rock” and argued that it lacks intrinsic value while being frequently associated with illicit activities such as money laundering and ransomware attacks.

Despite his strong words, Dimon did acknowledge the potential for cryptocurrencies within the broader financial system, particularly in applications supporting smart contracts. However, he remained steadfast in his view that Bitcoin has no viable future. “People can invest in it all they want,” Dimon said, “but I think it’s a complete waste of time and money.”

A History of Contradictions

Dimon’s remarks are consistent with his long-standing skepticism of Bitcoin, which he has repeatedly derided as a fraud and a speculative asset. In April 2024, he similarly referred to Bitcoin as a “Ponzi scheme,” arguing that its use as a currency is fundamentally flawed.

However, Dimon’s views on cryptocurrency have not been without contradictions. In 2018, he expressed regret for calling Bitcoin a fraud, though his criticism has remained largely unchanged in subsequent years. At times, Dimon has softened his stance, acknowledging the value of blockchain technology and cryptocurrencies with practical use cases.

His actions have also raised eyebrows. Despite dismissing Bitcoin, JPMorgan holds shares in Bitcoin-related investment vehicles, including BlackRock’s iShares Bitcoin Trust (IBIT) and Grayscale’s Bitcoin Trust.

Bitcoin’s Resilience Amid Criticism

Dimon’s renewed criticism comes as Bitcoin continues to demonstrate significant price volatility. After surpassing $100,000 in December 2024, Bitcoin recently fell back below $92,000, influenced by market speculation surrounding Federal Reserve interest rate cuts and potential regulatory changes under the new Trump administration.

Dimon’s harsh rhetoric has drawn backlash from the crypto community, with many pointing to JPMorgan’s investments in Bitcoin-related products as evidence of the company’s nuanced, if not conflicting, stance on the cryptocurrency.

Broader Industry Implications

Dimon’s latest comments reflect a persistent divide in the financial world over Bitcoin’s legitimacy and utility. While some traditional banking leaders remain skeptical, others view Bitcoin as a hedge against inflation and an innovative financial tool.

As Bitcoin continues to gain traction among retail and institutional investors, Dimon’s criticism highlights the ongoing debate over the role of digital assets in the global financial system.