Money & Industry

JPMorgan Chase CEO Calls Bitcoin A “Fraud”

JPMorgan Chase CEO Calls Bitcoin A “Fraud”
Camilo Atkinson

Jamie Dimon, CEO at JPMorgan Chase, said on Tuesday at the Delivering Alpha conference hosted by CNBC, that Bitcoin is a “fraud”, and not a “real thing” that will eventually blow up. He even called it “worse than the Tulip Bulbs” market bubble in the 17th century.

Back in 2015, at the Fortune Global Forum, when asked about the future of Bitcoin and cryptocurrencies, Dimon said: “it’s just not going to happen, you’re wasting your time.” He firmly believes that there will be no “non-controlled” or “non-regulated” currencies in the world.

JPMorgan’s CEO argues that cryptocurrency will eventually fail because when governments form, they form their own currency, and governments like to control the currency, where it goes, and who has it. If it gets too big, governments and central banks will put a stop to it.

Dimon’s remarks come right after China’s shut down of their domestic Bitcoin exchange, bringing its value down another 2.81 percent. As of Wednesday 1 am EST, one Bitcoin traded at $USD4,033.

Bitcoin is a Bubble

Dimon is not the only one who is openly skeptical about Bitcoin. Robert Shiller, a Nobel-winning author who is known for predicting the housing and tech bubbles, recently came out and said that it was the “best example right now” of a financial bubble. Yet, it remains one of the most crowded trades.

As reported by Bank of America Merrill Lynch, Bitcoin is today the most crowded trade in the world, in fact. It exploded in popularity increasing its value more than 315 percent in 2017, luring in investors looking for a safe heaven in this decentralized currency.

Even big names on Wall Street are beginning to embrace the use of cryptocurrency. Tom Lee from  Fundstrat Global Advisors, said in an interview back in August with CNBC that Bitcoin has the potential to be more valuable than gold.

When asked if he thought that this cryptocurrency would be the best performing asset from now to year end, he undoubtedly said “yes.”

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