The Chief Executive Officer of JPMorgan Chase & Co. which is a U.S. multinational banking and financial service provider, Jamie Dimon always attacks directly whenever something he does not like in the world of finance. Hence, recently, something like that happened with Bitcoin.
Beware! Bitcoin Is A Fraud, Says JPMorgan CEO
Jamie Dimon attacks directly when something he does not like in the world of finance. For years it has become very critical for the regulation that was adopted after the crisis. “We have to rebalance it,” insists the president of JPMorgan Chase. But neither is it for those who rejoice when others have problems. “Mistakes are a way of learning,” he says about the ghost bill scandal at Wells Fargo.
And then there is the phenomenon of virtual currencies. The most powerful banker in the United States believes that bitcoin is literally a “fraud” and warns that it will eventually burst. “It’s pure speculation,” he says. So he says it will not take “a second” to dismiss any employee who makes investment operations on behalf of the bank with the currency: “It’s stupid and very dangerous.”
The explanation is very simple: currencies have a legal basis for the governments that create them. “To control it, they create a central bank and they know who has it, where it is and where it goes,” he adds. “There are governments that see Bitcoin as a novelty,” he says, referring to the technology that supports it, similar to that used by entities such as JPMorgan itself to cut costs in its transactions.
His comments contrast with those of some well-known Wall Street figures who, however, see it as an opportunity. It is the case of Bill Miller or Tom Lee, Fundstrat, who see it appreciating up to $6,000. Jamie Dimon believes that it might make sense to adopt countries like Venezuela, Ecuador or North Korea. “There is no way it could be needed in the US,” he insists.
China, he said, is closing the exchange platforms. “I’m not saying that they are betting on it right now,” he says, “because it can still add $1,000 more before it falls.” “My daughter bought Bitcoin, went up and now thinks she’s a genius,” he quipped. The virtual currency appreciated 335% this year. This Tuesday it was changed to almost $4,200 before Dimon made the comment. Then it lost 2.5%.
That price insists the banker, “is not real.” What is more, he considers that a fraud is greater than the scam of tulip bulbs, considered as the first great speculative bubble, when the flower became an object of desire in the seventeenth century. “This can not end well,” he concluded. Dimon made these comments within the framework of two conferences held in New York.
It is the biggest attack against this decentralized currency. On Friday it reached its maximum value, changing to more than 5,000 dollars. But it is very volatile and depreciated suddenly after circulating the veto of the Chinese authorities because they consider it illegal. Bitcoin’s big rivals, such as Ether, also fell on comments from Dimon, who linked those virtual currencies with criminal activities.
Chamath Palihapitiya, one of the great investors in the digital currency, believes that Jamie Dimon is wrong and uses to justify the same argument. Bitcoin was created to circumscribe the control of the governments on their currencies and precisely its power. “The genius is out of the lamp,” he said in response to the banker, referring to how technological innovation is changing finances.
So, what do you think about Bitcoin? Simply share your views and thoughts in the comment section below.