JPM’s Jamie Dimon believes Satoshi Nakamoto will either increase or “destroy” Bitcoin supply

JPMorgan CEO Jamie Dimon took aim at Bitcoin again during an interview with CNBC on January 17, 2024 in Davos.

Dimon expressed an unusual theory in which he suggested that Bitcoin (BTC) could be eliminated once its maximum supply is issued. He said:

“I think there's a good chance that… when we get to 21 million Bitcoins, [Satoshi Nakamato] will show up there, laugh hysterically, be silent and all Bitcoins will be deleted.”

Dimon also pointed out that, in contrast, there is no guarantee that Bitcoin issuance will stop once the circulating supply reaches 21 million BTC. He said:

“How the hell do you know it stops at 9pm?” [million]? I’ve never met anyone who told me they knew for sure.”

One of Dimon's co-panelists, CNBC Squawk Box host Joe Kernen, pointed out that the last Bitcoin will not be mined until around 2140 due to increasing mining difficulties. Kernen added that Bitcoin shares many economic characteristics with gold, to which Dimon replied: “Maybe you’re right…” [but] I don’t own any gold either.”

Dimon's recent statements have sparked massive backlash on social media, both due to the general inaccuracy of his theories and the fact that he incorrectly pronounced the first half of Satoshi Nakamoto as “Satashi.”

Bitcoin mining rules are unlikely to change

Dimon's theories are unfounded since Satoshi Nakamoto created Bitcoin but has no control over the blockchain or its miners.

The maximum Bitcoin supply of 21 million is currently firmly established in the source code. Any change to this rule requires consent from miners, who are unlikely to adjust the rule due to their vested interest in the current model.

Additionally, any change that is not unanimously approved would result in the Bitcoin blockchain being split into two chains. To replace the main Bitcoin network and not just create a minority chain, majority support among miners would be necessary. Notably, Bitcoin Cash (BCH) was created in 2017 with minority support and remains separate from Bitcoin.

After all, the Bitcoin supply could only be destroyed if all BTC holders decided to send their funds to an irretrievable address or “burn” address. Although a significant portion of the Bitcoin supply has already been sent to such addresses, partial burning only increases the value of the BTC still in circulation.

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