Jamie Dimon, the CEO and chairman of JPMorgan Chase, has been on the record stating that he is not a fan of the bitcoin or other cryptocurrencies. He has even stated that he would fire people who trade it if he could.
Dimon recently said that he would no longer talk about the bitcoin as he calls it a “fraud.” But he did make a new statement about the currency at a panel hosted by the Institute of International Finance. He criticized the bitcoin even further by saying that he has no concern over how much the bitcoin is being traded for.
He argued that many people who are buying bitcoins are doing so as a means of encouraging people to buy into it just as well. This was simply to build up the price so those initial buyers could sell it off quickly, thus leading the newer buyers into a bind as they lose money.
He feels that the bitcoin is too much of a threat to the market and that it is not going to be a viable investment option forever. He argues that people who invest in it are going to pay a hefty price as the bubble is at risk of bursting.
His words come as the volume for trading the bitcoin has been increasing in recent time. Such volume increases make it easier for the bitcoin to rise in value but there is also a potential that the currency could suffer a substantial decline depending on what happens with it.
Dimon did say that he considers the blockchain system that the bitcoin uses to be sensible. He does have concern over how cryptocurrencies that use the system are not backed by the government. He believes that anything that was backed by a larger body could work with the blockchain system to produce transparent and carefully organized transactions. But even with that, he knows that the bitcoin could still be easily lost amid all the other investments that are being traded on a regular basis.
There are also worries in Dimon’s eyes over how the bitcoin is not something that is treated like gold or other traditional commodities. This is due to the bitcoin not being recognized by many countries.
Dimon referred to people who invest in the bitcoin as being “stupid” and that they do not understand the risks and issues that come with using this currency.
He did admit that his daughter owns two bitcoins. He jokingly referred to her as his “formerly smart daughter.”
He states that this is the last time that he is going to talk about the bitcoin. This is in spite of how he had he would stop discussing it earlier.
Dimon’s remarks come amid the bitcoin growing even further in terms of its value. The bitcoin has recently moved up above the $5,000 mark and has become easier for people to trade on Coinbase as they can use their bank accounts to directly acquire bitcoins. But even with this, Dimon remains one of the strongest critical of the currency and is trying to warn people about how dangerous it might be if it is not handled well enough.
Written by Michael Fox
