Investing

Jamie Dimon Calls Bitcoin A Fraud

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JP Morgan’s CEO, Jamie Dimon, has warned that Bitcoin “is a fraud,” and that there will come a time when it will explode and be worse than the famous tulip bubble of the seventeenth century.

In statements made to Reuters during his speech at a banking conference in New York, the director asserted that “the currency will not work” and also added that one can not think that anyone who invests in an “invented” currency is someone whose “really smart.”

“Any investor in my bank who is trading with this cryptocurrency will be rejected in seconds for two specific reasons: it is against our rules and they are stupid,” concluded the director of the largest US bank by assets.

He also ironically pointed out that this is a “very useful” fund-raising model if he were to be found in Venezuela, Ecuador or North Korea, and even if he were a drug dealer, by assimilating it with a tool for money laundering.

Following his comments, bitcoin fell by 5.6%. However, since the end of last year, this virtual currency has quadrupled its value. I typically don’t do news reports, but given how much I’ve written about Bitcoin, I felt compelled. Is he right? Stay tuned for my take in the coming days.

1 Comment

  1. Miguel @ The Rich Miser

    September 13, 2017 at 6:22 pm

    I recently saw a documentary called “Banking on Bitcoin” on Netflix, and do believe that cryptocurrencies may be useful for things like sending money between countries. Other than that and other limited uses, I have trouble seeing the usefulness of Bitcoin for everyday transactions, at least until there’s something like FDIC insurance safeguarding deposits. I do think the Ethereum smart contracts have a lot of promise, though.

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