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Jamie Dimon: Bitcoin is a 'Fraud'
Here are two things we learned today from Jamie Dimon that will definitely get a JPMorgan employee fired: Being stupid and investing in bitcoin.
And according to Dimon, being stupid and investing in bitcoin are one and the same. Speaking at an investor conference in New York on Tuesday, the JPMorgan Chase chief executive predicted that things “wont end well” for bitcoin and that the cryptocurrency is “a fraud” that’s “worse than tulip bulbs,” Bloomberg reports.
Tulips are a reference to the mania that swept Holland in the 17th century, with speculators driving up prices of virtually worthless tulip bulbs to exorbitant levels. That didn’t end well.
In bitcoin’s case, Dimon said he’s skeptical authorities will allow a currency to exist without state oversight, especially if something goes wrong. “Someone’s going to get killed and then the government’s going to come down,” he said. “You just saw in China, governments like to control their money supply.”
Dimon differentiated between the bitcoin currency and the underlying blockchain technology, which he said can be useful. Still, he said banks’ application of blockchain “won’t be overnight.”
Bloomberg notes that bitcoin fell 2.1 percent after Dimon’s remarks. And in case you’re wondering: Dimon not only thinks investing in bitcoin is stupid; it’s actually against JPMorgan’s rules for an employee to invest in the cryptocurrency.