Jamie Dimon is consistently making remarks against cryptocurrencies even though his bank invests heavily in developing blockchain technology. His bank is responsible for making blockchain a $1.6 trillion industry. In some of his previous statements, Dimon has strongly criticized cryptocurrencies by calling them a ‘hyped fraud’, a ‘Ponzi scheme’, and a ‘pet rock’. Therefore, it is necessary to examine some of the allegations of Jamie Dimon on cryptos.
Advantages of Cryptocurrencies That Dimon Chooses To Overlook
Cryptocurrencies are highly advantageous in many respects. It is still a mystery as to why Jamie Dimon chooses to overlook these advantages.
No Payment Restrictions
Cryptocurrencies have lesser or in some cases no payment restrictions compared to fiat currencies. For instance, individuals living in poor countries can use Bitcoin as a medium of exchange without the need for any government entity or control. It gives more financial freedom.
Less prone to Manipulation
Cryptocurrencies are less prone to manipulation because they require complex algorithms. This makes it virtually impossible for governments, central banks, and elites to manipulate its value. The opposite is true for fiat currencies.
Speed of exchange
Cryptocurrencies offer very fast transactions, unlike fiat currencies. People need not wait for banks to open to transfer their money. For example, Bitcoin takes just 10 minutes for validation. Crypto transactions, unlike fiat, are always digital and online and require no manual effort.
Free transactions
The transactions involving cryptocurrencies are normally free. People can freely exchange cryptos by using a proper cryptocurrency exchange platform. The same is not true for fiat currencies because most banks charge transaction fees.
Criminal Usage of Fiat Currency That Dimon Ignores
Jamie Dimon has often spoken against cryptocurrencies citing some examples of illicit usage. However, the same can be said of fiat currencies too. Criminals are more prone to misuse fiat compared to cryptocurrencies. Cash is highly vulnerable to theft compared to cryptocurrencies. For example, carrying cash is considered risky in many places in the world. This is because thieves snatch away cash. Once lost, it is hard for affected individuals to recover lost cash. Similarly, there have been many cases of credit card fraud involving criminals.
In December 2022, the Nilson Report published that in the US, the losses from credit card fraud may total $165.1 billion in the next 10 years. As per Security.org, the number of adult victims of credit card fraud is 127 million. Compared to this, cryptocurrency frauds are far less regular. Therefore, Jamie Dimon is misleading the masses by calling cryptos a Ponzi scheme. In reality, fiat currencies are much more prone to criminal use.
Growing Acceptability of Cryptos in the World
The spectacular rise and growing acceptability is an indication that Jamie Dimon is wholly wrong on cryptos. The popularity of cryptos is not restricted to the US or the developed world. The fact is cryptocurrencies are becoming very popular in developing countries too. Bitcoin, which ironically Dimon wants to ban, had 106 million owners in 2022. Nearly 200 million people have Bitcoin wallets. The reason behind this growing popularity is that the common masses have started believing that it can solve the inefficiencies in the traditional financial system.
Also Read- Blockchain Projects to Fight Against Climate Change
In Conclusion
Jamie Dimon is just plainly wrong about cryptos. He either chooses to overlook facts on cryptos or has some agenda behind his allegations and rhetorics. The growing popularity of cryptocurrencies is an indication that the world is not listening to his baseless allegations. Moreover, the criminal usage allegation also does not hold much water, because both cash and credit cards are far more prone to criminal usage. Furthermore, there are many advantages that cryptos have over fiat currencies, which the common masses are steadily realizing.
Source: https://finance.yahoo.com/news/jamie-dimon-clearly-misinformed-cryptos-080000023.html
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