The Ponzi system is a financial scam that focuses on contributing capital, receiving significant profits immediately, but not thanks to legitimate interests obtained in the market, but by the entry of new investors into the scheme.
It is also called a pyramid scheme, since it requires the entry of more people to contribute new capital so that the first ones, who arrived first, can recover theirs and earn more.
The name of the ponzi scheme It comes from Carlo Ponzi, the Italian-born swindler who settled in New York in the 1920s.
The Ponzi scheme became relevant this Thursday, September 22, because Jamie Dimon, the CEO of JP Morgan Chase, referred critically to Bitcoin and other cryptocurrencies when he was consulted at a hearing in the US Congress.
“I am absolutely skeptical of cryptographic tokens, those that are called currency, like bitcoin,” said the CEO of JP Morgan speaking before the congressmen.
And I add: “These are decentralized Ponzi schemes.”
Dimon also talked about stable coins or stablecoins and the blockchain.
Regarding stablecoins, digital assets that are pegged to currency values such as the dollar, Dimon said they are not a big problem “with proper regulation.”
As soon as to blockchains, spoke in favour.
It is not the first time that Dimon has spoken ill of bitcoin and cryptocurrencies. He once declared that they were “a fraud”, although he later said he was sorry for the comments.
JP Morgan and a love/hate relationship with bitcoin
The JP Morgan referent spoke in the United States Congress in the framework of the advancement of a bill that is advancing in the House of Representatives to legislate stable cryptocurrencies.
According to one of the latest versions of the project, in the United States it will be illegal to issue or create new stablecoins with endogenous guarantee, similar to the ill-fated Earth USDthe crypto algorithmic stablecoin that crashed in 2022.
While Dimon routinely trash talks crypto, JP Morgan is moving ahead with projects to use blockchain for its financial services.
In fact, the investment bank already uses them for some contracts, just as it endorses custom tokens. In fact, he created the JPM Coin to offer short-term loans.
JP Morgan was also the first bank in wall street to launch a profile in the metaverse.
Last year, amid the boom in cryptocurrency prices, Dimon called Bitcoin “completely worthless,” warning that governments would “soon” regulate it.
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