JPMorgan CEO to clients: Don’t get involved in Bitcoin

Bitcoin (BTC-USD) is a type of cryptocurrency that does nothing, said JPMorgan Chase CEO Jamie Dimon who said he would advise his clients not to get involved in Bitcoin (BTC-USD), or in any of the new ETFs that were approved last week.

Those include Grayscale Bitcoin Trust (GBTC), Blackrock’s iShares Bitcoin Trust (IBIT), Valkyrie Bitcoin Fund (BRRR), Ark 21Shares Bitcoin Trust (ARKB), Invesco Galaxy Bitcoin ETF (BTCO), VanEck Bitcoin Trust (HODL), WisdomTree Bitcoin Trust (BTCW), Fidelity Wise Origin Bitcoin Trust (FBTC), Bitwise Bitcoin ETF (BITB), Hashdex Bitcoin ETF (DEFI), and Franklin Bitcoin ETF (EZBC).

“There are two types of cryptocurrency, there’s a cryptocurrency which might actually do something…and we can use it to buy and sell real estate, to move data, tokenizing things that you do something with, and then, there is the other type that does nothing,” he said.

The other type he called “the pet rock,” such as Bitcoin (BTC-USD), and added that uses cases for the crypto coins include fraud, money-laundering, tax avoidance, and sex trafficking.

“Maybe $50-100B a year for that,” he said. “That is the end use case, everything else is people trading among themselves”, Dimon said, adding that there is a good chance that when Bitcoin (BTC-USD) hits 20M bitcoins, “all bitcoins are going to be erased.”

Supply is currently at 19.6M and the stock is down 7.64% from the past five days. “If you can’t solve the bad use cases, the government is probably going to have to close it down”, Dimon concluded.