Coinbase and Twitter chiefs challenge JPMorgans Dimon over Bitcoin criticism

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JPMorgans Jamie Dimon may have bit more than he could chew this week, after escalating his long row against bitcoin with a new challenge that left the crypto community scratching their heads.

In a broad discussion on October 11 hosted by the Institute of International Finance, the bank’s boss grabbed the headlines when he said he personally believed bitcoin to be worthless, even though JPMorgan s ‘ready to give its customers access to the market.

Dimon’s thoughts on bitcoin are well known, having previously called it a fraud worse than the Dutch tulip bulb crisis of the early 17th century. But among crypto traders, it was Dimons taking on the blockchain network underlying cryptocurrencies that raised concerns.

In the original bitcoin white paper, pseudonymous founder Satoshi Nakamoto said the Bitcoin protocol was designed so that it could only ever create 21 million individual bitcoins. Crypto experts argue that its design is one of the reasons bitcoin can be considered valuable, as the ability to mine new tokens will eventually run out and scarcity will cause the price to rise.

I’m just going to challenge the group on one more thing: how do you know it ends at 21 million? Do you read all algorithms? Do you all believe that? I don’t know, I’ve always been skeptical of this stuff, Dimon said in comments to IIR reported by Yahoo Finance.

READJPMorgans Jamie Dimon on the end of the shortage crisis and why bitcoin is worthless

Yes, I read it. And then I wrote it (coding our own Bitcoin node) to make sure I understood it, Coinbase CEO Brian Armstrong said, responding to Dimons’ statement on bitcoin algorithms in a tweet from the October 11.

Fortunately, the tools for learning it are available online for free and are getting better and better. It is accessible to almost anyone, if they are ready to master it and at least learn the basics.

Other crypto figures have also weighed in on the comments from the heads of JPMorgan, which caused a stir among online communities gathered on platforms such as Twitter and Reddit.

Imagine if no one had ever read the algorithms and 100 years from now or whatever bitcoin continues to run, printing more coins, said Jordan Fish, a popular crypto trader and streamer who operates under the username CryptoCobain. . Damn, I should have read the algorithms.

The price of Bitcoin has remained broadly stable after Dimons’ appearance at the conference, having risen by around 1.6% in the past 24 hours at 10:00 a.m. BST on October 12. Armstrong, whose company went public earlier this year, said Dimon’s lack of technical knowledge was a sign of impending change in the industry.

I think CEOs with no scientific or technical training will be at a disadvantage in the decades to come, Armstrong said. Frankly, [so will] probably politicians, journalists and many [other] the roles. Software eats the world, changing every industry.

READCraig Wright, the man from Surrey Satoshi and the battle for bitcoin

In part, Dimons’ request was valid. The 21 million Bitcoin token cap isn’t a hard-wired stop, meaning it could be changed by consensus if the majority of miners agreed to a network-expanding upgrade.

But the likelihood of that happening is low, experts say, given the impact it would have on the value of cryptocurrencies.

Bitcoin’s fundamental value proposition is: predictable and unalterable supply. Most bitcoiners know this, so they think they would hurt bitcoin and themselves if they changed that, said Ari Paul, founder and chief investment officer of crypto fund manager BlockTower Capital, in a thread. Twitter explaining the process.

Bitcoiners would only expect bitcoiners to support a change if it was clearly in their best interest. A change to correct a critical bug is therefore very plausible. A change to eliminate the value of the assets you hold is not.

Since Dimons 2017 Tulip Bulb Commentary, bitcoin has risen about 1,500% to its Oct. 12 price of $ 57,000.

Personally, I think Jamie Dimon is worth more than Bitcoin, Twitter boss Jack Dorsey said after the first appeared.

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To contact the author of this story with comments or news, email Emily Nicolle

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