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Jamie Dimon says Bitcoin is Fraud - John Mcafee challenges

Sep 14, 2017 Posted /  22835 Views

Jamie Dimon says Bitcoin is Fraud - John Mcafee challenges

Jamie Dimon says Bitcoin is Fraud - John Mcafee challenges

JP Morgan claims Bitcoins as a Fraud:

JPMorgan CEO Jamie Dimon stated that bitcoin is a 'fraud' that will sooner or later get demolished.

Dimon said this at the Delivering Alpha conference presented by CNBC and Institutional Investor that "It's just not a real thing, eventually it will be closed."

Dimon even joked that his daughter also purchased some bitcoins, looking to trade in on a trend that has seen it upsurge more than 300 percent this year.

Futher he added that "I'm not saying 'go short bitcoin and sell $100,000 of bitcoin before it goes down, this is not advice of what to do. My daughter bought bitcoin, it went up and now she thinks she's a genius."

Comparing with Tulip Bulbs

In a separate conference earlier on Tuesday, Dimon said bitcoin obsession is reminiscent of the tulip bulb craze in the 17th century.

Dimon said at a banking industry conference organized by Barclays that "It's worse than tulip bulbs. It won't end well. Someone is going to get killed, Currencies have legal support. It will blow up."

Tulips are a reference to the craze that swept Holland in the 17th century, with speculators driving up prices of virtually insignificant tulip bulbs to very expensive levels which didn’t finished up well.Dimon furthermore said he'd "fire in a second" any JPMorgan trader who was trading bitcoin, noting two reasons: "It's against our rules and they are stupid."

Bitcoins prices dropped by a bit

Bitcoin got knocked  down to its session lows after Dimon's comments whne in New York bitcoin traded at $4,106.23, down 2 percent. Dimon's disapproval arrived at a time when some of the most renowned figures on Wall Street are preparing to grip the cryptocurrency. Dimon's own bank, JPMorgan, has supposedly started an experimental project using blockchain as it tries to slash trading costs. Blockchain is the technology behind bitcoin and bicoin has already surged 315 percent this year. Previously, on Tuesday itself, Dimon cautioned about additional turn down in trading revenue for the banking giant. He said third-quarter trading revenue will fall about 20 percent on a year-over-year basis. Dimon also said the bank may not give intra-quarter assistance in the future. JPMorgan's stock chopped down off its session highs on the comments, but stayed upto 1.4 percent on the day.

Dimon won't short bitcoins

The bank chief said he wouldn’t undersize bitcoin for the reason that there’s no telling how high it will go before it collapses. The best dispute he’s heard, he said, is that it can be of use to people in places with no other alternatives, so long as the supply of coins doesn’t rush forward. “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 U.S. dollars, so there may be a market for that, but it’d be a limited market.” he said.

The Bitcoin Rush

Bitcoin has ascended high in current months, encouraged by better reception of the blockchain technology that supports the exchange method and hopefulness that quicker transaction times will give confidence to a broader utilization of the cryptocurrency. 

Last week, it drooped after the information that China strategizes to ban trading of virtual currencies on domestic exchanges, going through another blow to the $150 billion cryptocurrency market.

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Tags: bitcoin bitcoin john mcafee Bitcoin JP Morgan Bitcoin Jamie Dimon

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