JPMorgan Chief Believes Bitcoin Supply Won’t be Capped At 21 Million
At the current ongoing World Economic forum at Davos, Switzerland, JPMorgan chief Jamie Dimon lashed out at Bitcoin once again sharing all his pessimism towards the cryptocurrency.
The JPMorgan chief tossed up an interesting suspicion stating that he doesn’t think that Bitcoin’s total supply will be capped at 21 million coins. During his interview with CNBC on Thursday, January 19, Dimon said: “How do you know it's gonna stop at 21 million? Maybe it's gonna get to 21 million and Satoshi’s picture is gonna come up and laugh at you all.”
Thus, Jamie Dimon was directly challenging Bitcoin’s value proposition of being a store of value. Bitcoin differentiates from the fiat currency from the very fact that it doesn’t have an unlimited supply and cannot be printed out of thin air.
Thus, an absolute supply cap gives Bitcoin greater scarcity over any other government-issued currency on earth. This is not the first time that Jamie Dimon was challenging Bitcoin’s supply cap. While speaking at an Institute for International Finance event last October, Dimon said: “You all read the algorithms? You guys all believe that? I don't know, I've always been a skeptic of stuff like that”.
Dimon’s arguments stems from the fact that anything implemented by code can technically be changed, as longs as users consent to it. But for Bitcoin supply to increase anytime in the future, millions of users worldwide will have to agree to it. Doing so would mean that users might have to devalue their holdings.
Besides, many also argue that the Bitcoin community will have to upgrade its software in the future for producing more than 21 million coins, in order to offer consistent funds to support the mining industry.
Having referred to Bitcoin as a “Ponzi scheme” in the past, Dimon once again lashed out at the crypto calling it a “hyped-up fraud” and a “pet rock”. While Jamie dimon has been a big critic of Bitcoin, he doesn’t hold the same view for blockchain.
Using the blockchain technology, JPMorgan is already working on a cross-border solution. JPMorgan’s Onyx blockchain offer Liink, a network primarily used for international trade wherein institutions can exchange financial information and confirm transactions.