JP Morgan Chief Executive says Bitcoin is a fraud
Sep 13, 2017 Business 3196 By Abdulkerimu Oare
- The bitcoin is a fraud, says Jamie Dimon
- "You can't invent a currency out of thin air and think that the buyers are really smart.
- It may take a while but the Bitcoin will eventually blow up.
- Dimon aims to fire any JP Morgan staff who invests in Bitcoin.
Jamie Dimon, chief executive of JPMorgan Chase
& Co has stated on Tuesday that the Bitcoin is a fraud and will eventually blow up.
Speaking at a bank investor conference in New York, Dimon said, "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."
Dimon said that if any JPMorgan traders were trading the crypto-currency, "I would fire them in a second, for two reasons: It is against our rules and they are stupid, and both are dangerous."
Dimon predicted big losses for bitcoin buyers. "Don't ask me to short it. It could be at $20,000 before this happens, but it will eventually blow up." he said.
"Honestly, I am just shocked that anyone can't see it for what it is."
Bitcoin's price fell as much as 4 percent following Dimon's comments and was last trading at $4,164. Rumors that the Chinese government is planning to ban trading of virtual currencies on domestic exchanges has weighed on bitcoin recently.
"It feels like we are in the midst of a negative news cycle, but even considering all this, we are still trading above $4,000." said John Spallanzani, chief macro strategist at GFI Group.