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So much for bitcoin being a ‘fraud’

Bitcoin on Dollar Bills
Three years ago, he called bitcoin a "fraud." Today, his company is leading the crypto banking revolution...
Bitcoin on Dollar Bills
Daniel Creech
By Daniel Creech Research Analyst

Banking icon and JPMorgan CEO, Jamie Dimon, is finally coming around on bitcoin and cryptocurrencies…

Back in 2017, Dimon made headlines when he called bitcoin “a fraud,” and “not a thing,” and said the crypto would eventually be shut down. He even compared the excitement around bitcoin to the Tulip Mania of the 1600s.

Confusing things further was the fact that JPMorgan was running a trial project using blockchain—bitcoin’s underlying technology—when Dimon spoke.

The CEO later walked back his comments, but not before the crypto fell 2% during his interview.

Today, the price of bitcoin is more than 130% higher… and Dimon’s JPMorgan has become an innovator in the sector.

JPMorgan—the largest bank in the U.S.—announced this month that it’s working with two U.S. cryptocurrency exchanges: Coinbase (the largest U.S. exchange) and Gemini (started by the billionaire Winklevoss twins).

In sum, JPMorgan is now providing crypto-exchange users with deposit and withdrawal services, as well as helping the exchanges manage cash. 

This milestone is a turning point for bitcoin and cryptos.

You see, most banks keep their distance from crypto exchanges and businesses, since this newer asset class is still in a regulatory gray area. And skeptics are quick to point out many crypto accounts and transactions can be difficult to trace. This brings in fears of illicit activity and money laundering.

Coinbase and Gemini are JPMorgan’s first-ever crypto clients… And that’s because these exchanges have taken regulations seriously and brought a bit of normalcy to cryptos. 

While some crypto diehards still want little to zero regulation and oversight, you need a level playing field for cryptos to go mainstream. They need to be accessible to the everyday investor. And these investors will be more likely to venture into a new space with the backing of well-known brands like JPMorgan.

In less than three years, JPMorgan has done a complete 180 on the crypto space. Now that it’s making moves, expect other big industry names to follow. More major banks will accept crypto clients… giving hedge funds and individual investors alike easier access to this incredible asset class.

Cryptos are here to stay… and I can’t wait to see what the next three years hold.

Daniel Creech
Daniel Creech is a Curzio Research analyst with over a decade of experience. He writes on macro trends, large- and small-cap stocks, and digital securities. He’s a regular contributor to Token Tracker, Curzio Research Advisory, and The Dollar Stock Club.
Daniel Creech
Daniel Creech is a Curzio Research analyst with over a decade of experience. He writes on macro trends, large- and small-cap stocks, and digital securities. He’s a regular contributor to Token Tracker, Curzio Research Advisory, and The Dollar Stock Club.
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