3 Years After Calling Bitcoin A Fraud, JPMorgan Releases Its Own Crypto, Says BTC Could Go 3x

News / 27.10.2020

If you can’t beat them, join them. Or, in this case, create your own crypto. 

In 2017, just before the crypto boom, which saw bitcoin trading at an all-time high above $20,000, Jamie Dimon, the chairman and CEO of JPMorgan Chase, described Bitcoin with some of the most derogatory words ever used on the cryptocurrency. 

Bitcoin Is A Fraud

At the time, Dimon blasted bitcoin, calling it a “fraud” that would get “someone killed.” He said the cryptocurrency was “worse than tulip bulbs and won’t end well.” He continued, “it’s just not a real thing, eventually, it will be closed.” 

For clarity, tulips were prized commodities centuries ago, and by 1636, they were traded on many Dutch stock exchanges. According to Investopedia, many investors sold or traded their possessions just to partake in the market action. The bubble burst in 1637. And the value of bulbs crashed, leaving many investors in great financial ruin. 

Comparing bitcoin to the tulips, Dimon warned investors to stay away from cryptocurrencies. He even said he would fire anyone who traded bitcoin for being “stupid.” 

From Hate to Love

Less than five months after making those remarks about Bitcoin, Jamie Dimon said he “regrets” his comments, adding that “blockchain is real.” 

Since then Wall Street banking powerhouse, JPMorgan has been bullish on digital assets and blockchain technology. The company has several times shown its support for Bitcoin and cryptocurrencies. 

Interestingly, in February this year, the bank said that crypto assets have a place in investors’ portfolios to “hedge against a loss of confidence in both the domestic currency and the payment system.”

The bank even started offering its services to major US-based cryptocurrency exchanges including Coinbase and Gemini.

JPM Coin Goes Live

Following the change of heart about Bitcoin and crypto assets, JPMorgan announced in February 2019 that it would launch its own cryptocurrency dubbed JPM Coin. 

According to the bank at the time, JPM Coin will be issued as a stablecoin pegged 1:1 to the US dollar. And it would serve big institutional clients that have regulatory clearance. 

More than 19 months after the initial announcement, JPMorgan said today that the JPM Coin is now live. The company revealed it will start using the cryptocurrency for cross-border payments this week. 

JPMorgan said it believes in the future of blockchain technology. It has set up a new business arm called Onyx to manage its blockchain and digital currency operations.

Bitcoin’s Price Would Do 3X

Meanwhile, with bitcoin trading at a 15-month high, JPMorgan analysts said the cryptocurrency could double or triple in price if the asset continues its current trend. Considering that Bitcoin is currently trading at above $13,200 the prediction sees the coin trading at $40,000, which would be a milestone for the asset. 

For one thing, Bitcoin has become a favorite alternative to gold among millennials, thanks to the pandemic-induced crisis in March. The analysts believe that if the current trend continues, Bitcoin could even challenge gold in the long run. 

Mandy Williams joined the crypto space in 2016, and since then she has been learning and writing about cryptocurrencies and blockchain technology.