Investment bank JPMorgan Chase has said that cryptocurrencies would only have value in a dystopian economy.

In a recent note to its clients, the firm said that it was skeptical of the value of cryptocurrencies apart from in a “dystopia” where investors have lost confidence in “all major reserve assets (dollar, euro, yen, gold) and in the payments system,” according to a report from Business Insider on Monday.

The banking giant further said that, though cryptocurrencies have a low correlation to traditional asset classes such as shares and bonds, they are not the best bet for diversification. “Low correlations have little value if the hedge asset itself is in a bear market.”

JPMorgan also reportedly said earlier this week that, with prices so low, bitcoin is worth less than the cost to mine it.

Bitcoin and the wider crypto market have spent the last year in a bear market. After reaching a record high of about $20,000 in December 2017, bitcoin is down 83 percent and is currently trading at around $3,420.

JPMorgan CEO Jamie Dimon is famously anti-crypto. Back in September 2017, he declared bitcoin a “fraud” and said, “It’s worse than tulip bulbs. It won’t end well. Someone is going to get killed.”

Later in January 2018, Dimon said he regretted calling bitcoin a fraud, yet he remains skeptical on the topic. Most recently, he asked investors to stay alert. “I don’t wanna be the bitcoin spokesman. You know, just beware,” he said.

JPMorgan, as an institution, however, believes that cryptocurrencies might one day play a role in the diversification of global equity and bond portfolios, according to a February 2018 research report.

JPMorgan image via Shutterstock