JP Morgan`s Boss Calls Bitcoin a Fraud

JP Morgan`s Boss Calls Bitcoin a Fraud

JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon reportedly said Bitcoin is a fraud that will blow up.

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JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon reportedly said Bitcoin is a fraud that will blow up.

Speaking at a conference in New York, Dimon made clear he would fire any employee found to be trading in bitcoin.

“For two reasons: it’s against our rules, and they’re stupid. And both are dangerous.”, as he stated as quoted by the Guardian (theguardian.com) and Bloomberg (bloomberg.com), among other media outlets.

“The currency isn’t going to work. You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart.”, as he added.

“If you were in Venezuela or Ecuador or North Korea or a bunch of parts like that, or if you were a drug dealer, a murderer, stuff like that, you are better off doing it in bitcoin than US dollars.”, according to Dimon.

“So there may be a market for that, but it would be a limited market.”, he elaborated as quoted by the Guardian.

Bitcoin has soared in recent months, but slipped after Dimon`s comments. The cryptocurrency also went down after recent reports that China plans to ban trading virtual currencies on domestic exchanges.

Dimon compared the Bitcoin craze to the tulip mania that took over Holland in the 17th century. At the time, speculations led to rising prices of virtually worthless tulip bulbs. The result was devastating for many Dutch people who lost their homes and a lot of money, as Investopedia explained.

“It’s interesting that somebody with that high profile of the establishment is out there with that bold statement.”, said Jeffrey Gundlach, chief investment officer of DoubleLine Capital, commenting on the view of Dimon.

As Gundlach stated, he doesn`t have an opinion on bitcoin but he is concerned it may be more vulnerable to manipulation than enthusiasts admit.

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