Speaking at a banking conference in New York, Jamie Dimon, the CEO at investment bank, JP Morgan, has labelled crypto-currency, Bitcoin, a fraud that will ultimately blow up.
Mr Dimon's condemnation of the dominant cyber currency continued, adding that he would "in a second" dismiss any staff member trading Bitcoin at JP Morgan "for two reasons: it’s against our rules, and they’re stupid. And both are dangerous."
He added, "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. 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. So, there may be a market for that, but it’d be a limited market."
Bitcoin, along with many smaller digital currencies, emerged in the immediate aftermath of the 2007/08 financial crash, allowing people to pay for goods and services whilst bypassing the banks. But, many financial institutions have been extremely vocal regarding their views on crypto-currencies. Money laundering and cybercrime are common concerns amongst banks.
Dimon compared the hysteria surrounding Bitcoin to 'Tulipmania'; a boom in the 1600's which saw the price of tulip bulbs reached extraordinarily high levels before the subsequent crash in 1637. He claimed, "It [Bitcoin] is worse than tulip bulbs. Don’t ask me to short it. It could be at $20,000 before this happens, but it will eventually blow up. Honestly, I am just shocked that anyone can’t see it for what it is."
Year-on-year for September, Bitcoin's share price jumped from $600-$630 in 2016 to reach an all-time high earlier this month when it topped the $5,000 mark for the first time ever. After the comments made by JP Morgan's CEO, the currency dropped 4%, currently trading at $3854.57.
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