Bitcoin

JPMorgan's Dimon Calls Bitcoin A Fraud

Bitcoin can add another naysayer to its list: JPMorgan Chase & Co. chief executive Jamie Dimon. According to a report in Reuters, Dimon recently stated during an investor conference in New York that Bitcoin “is a fraud” and predicted the cryptocurrency would implode.

“The currency isn’t going to work,” the executive said. “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 also said any JPMorgan traders working with the cryptocurrency would be fired on the spot for two reasons: It’s against the company’s rules, first of all, and secondly, Dimon feels it is “stupid.”  His comments come as the price of Bitcoin has quadrupled since December and at one point flirted with a new high of $5,000.

“Don’t ask me to short it,” Dimon said, according to Reuters. “It could be at $20,000 before this happens, but it will eventually blow up. Honestly, I am just shocked that anyone can’t see it for what it is.”

Dimon isn’t the only Bitcoin skeptic. Governments around the globe — including Russia, China, the UK and the U.S. — have been warning about the risks associated with cryptocurrency. Take China, for one example. Earlier this month, the country cautioned about potential problems associated with initial coin offerings (ICOs) and banned them. A report has since surfaced that China is gearing up to ban Bitcoin exchanges entirely.

Meanwhile, Russia also warned about the risks associated with cryptocurrency but said rather than fighting the digital payment method, it would move to regulate it. The Securities and Exchange Commission (SEC) in the U.S. said it, too, would seek to regulate any coin offerings. Startups have been turning to ICOs for funding while large numbers of people are getting into mining the digital coins. Enhanced interest is prompting government regulators to continue to highlight the risks.

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