Former Ripple CTO Claims Bitcoin Is a ‘Technological Dead End,’ as JP Morgan Turns Bullish Despite ‘Extreme Fear’ Fall

Kurt Robson

Thu, February 12, 2026 at 8:42 PM GMT+9 3 min read

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+1.73%

Key Takeaways

Former Ripple CTO David Schwartz described Bitcoin as a “technological dead end.”

Despite the recent downturn, JPMorgan expects digital asset inflows to rebound in 2026.

The Crypto Fear and Greed Index plunged to 6 before rebounding to 12, signaling extreme fear.

David Schwartz, former Ripple chief technology officer and one of the architects of the XRP Ledger, has sparked controversy by describing Bitcoin as a “technological dead end” akin to the dollar.

The renewed criticism of Bitcoin comes as Wall Street shows signs of warming to the sector again, with JPMorgan projecting a more optimistic outlook for digital assets in 2026 despite a sharp market downturn that has pushed sentiment into “extreme fear.”

Schwartz: Bitcoin’s Technology Has Stopped Mattering

Schwartz was responding to a user who asked whether he had considered working on Bitcoin again after co-creating the XRP Ledger.

“Not really,” Schwartz wrote. “I think Bitcoin is largely a technological dead end for the same reason the dollar is.”

He added that Bitcoin’s success has not depended on innovation at the base blockchain layer, arguing that the technology “doesn’t seem to matter all that much” to its adoption and market strength.

Schwartz’s comments are reminiscent of criticisms often leveled at Bitcoin by its detractors, who claim its growth is based solely on speculation and belief.

The former Ripple CTO called Bitcoin a “technological dead end.” | Source: X (@JoelKatz)

However, in a follow-up post, he explained further, stating that the core function investors care about is not new features, but instead the simple expectation that Bitcoin will remain usable and transferable in the future.

“For 99% of what makes Bitcoin interesting, all the blockchain needs to be able to do is allow people to rely on being able to hold and transfer Bitcoin in the future,” Schwartz wrote.

He also acknowledged that technological upgrades may eventually become unavoidable, highlighting the eventual need for a “fork to be quantum proof.”

“I guess that will be at least one case where technological changes will be necessary, or Bitcoin will collapse,” Schwartz added.

JPMorgan Turns Bullish on Crypto for 2026

While Bitcoin drew skepticism from one of the industry’s best-known engineers, JPMorgan analysts struck a more constructive tone on the sector’s medium-term trajectory.

In a note published Monday, strategists led by Nikolaos Panigirtzoglou said the bank expects digital asset inflows to rebound in 2026, driven primarily by institutional investors.

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The bank now estimates Bitcoin’s production cost at around $77,000, down sharply in recent weeks.

Analysts said extended trading below that level could increase pressure on miners, potentially forcing higher-cost operators offline, a process that could ultimately lower production costs.

JPMorgan also argued that Bitcoin’s positioning relative to gold has improved, noting that gold has outperformed since October while also becoming significantly more volatile.

‘Extreme Fear’ Grips Crypto After Liquidation Cascade

JPMorgan’s optimistic view comes despite the market’s recent selloff, which has pushed Bitcoin’s price down to $67,539.

Overall, crypto sentiment has deteriorated sharply.

The Crypto Fear and Greed Index, which combines volatility, trading activity, social sentiment, dominance, and trend indicators into a single reading from 0 to 100, plunged to 6 over the weekend, one of its lowest levels on record.

It later rebounded to 12, but remained firmly in the “extreme fear” zone. It is currently set at just 8.

Historically, extreme fear readings have often coincided with capitulation events and periods of stress-driven selling.

The post Former Ripple CTO Claims Bitcoin Is a ‘Technological Dead End,’ as JP Morgan Turns Bullish Despite ‘Extreme Fear’ Fall appeared first on ccn.com.

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