Investment legend and multi-millionaire Kevin O’Leary is convinced that JPMorgan CEO Jamie Dimon feels threatened by crypto. Earlier this month, Dimon referred to digital currencies as bitcoin (BTC) decentralized pyramid schemes. According to O’Leary, Dimon is especially afraid of the disruptive power of cryptocurrencies such as bitcoin.
Banks benefit from friction
Kevin O’Leary explains at the Converge22 conference that “friction” is one of the major problems in the financial industry that benefits banks. Because of that friction, they make a profit on the transaction costs, which, according to him, can put an end to stablecoins, among other things.
“This isn’t about speculation, it’s about lowering costs within the economy. More transparency, more productive, completely verifiable, regulated, but less expensive. So, does Jamie Dimon feel threatened? Of course he feels that. This is an important source of income for his bank.”
According to O’Leary. According to the investment legend, especially the institutional public, the so-called big money, is still waiting for clear laws and regulations before they step in. If that regulation is in place, Kevin O’Leary expects a 10 percent increase in prices on the first day.
Lack of clear legislation
It is not the first time that O’Leary has complained about the lack of clear legislation for bitcoin and the crypto world in general. In a recent interview With Stansberry Research, he says the bitcoin price is stagnating because a lack of clear rules is holding back the institutional public.
“I predict that crypto and bitcoin in particular will remain between $20,000 and $25,000 until we get clear rules. Until then, it’s not going anywhere at all, because there aren’t enough buyers. You need the trillions from the pension funds, but they are not going to buy bitcoin until there is clarity.”
Thus a clear O’Leary. In a way, law and regulation goes against the original ethos of bitcoin, but it is a neutral asset. Anyone can use bitcoin the way they want to. Nowhere is it written that you have to keep bitcoin in your own wallet or run a node yourself to be a ‘real’ bitcoiner.