Published: Mon, September 18, 2017
Economy | By Melissa Porter

JP Morgan: Bitcoin is fraud and will blow up

JP Morgan: Bitcoin is fraud and will blow up

Earlier this week CEO of JP Morgan, Jamie Dimon, called Bitcoin a "fraud".

"I would fire them in a second, for two reasons: It is against our rules, and they are stupid, and both are risky", Dimon said, as quoted by Reuters.

According to Dimon, bitcoin could be useful "if you were in Venezuela or Ecuador or North Korea. or if you were a drug dealer or a murderer".

In response to Dimon's comments, J.P. Morgan's former global trading macro head tweeted: "Jamie, you're a great boss and the GOAT bank CEO". His opposers say Dimon is trying to deliberately crash the Bitcoin market so that he could get in on the action and make some bucks.

Hayter highlighted a comment from one CryptoCompare user, ZoidbergPhD, on its forum accusing Dimon of "hypocrisy." . "Analyst Thomas Lee, who this summer predicted Bitcoin (currently priced around $3,800) could be worth $20,000 to $55,000 by 2022 as cryptocurrencies "[cannibalize] demand for gold", seems to be expecting such a phenomenon to play out over a lengthier period of time. Bitcoin lost a massive $1,000 in value since the beginning of September when its price was close to breaking a new record of $5,000. Yesterday, the famous founder of McAfee Antivirus, John McAfee, said in a TV interview that Bitcoin is NOT a fraud.

Many Bitcoin investors and believers think that Bitcoin is not in a bubble state. Because it costs whatever the paper costs, but it costs me and other miners over $1,000 per coin. "Which one's the fraud?" he asked.

"It will rise and fall and it is highly volatile, as all new technologies are, but it is certainly not a fraud". Bears include Jamie Dimon, Howard Marks and Mohamed El-Erian, among many others. "It's called proof of work".

"Once you start using cryptocurrencies - whether its bitcoin or Monero or Litecoin it doesn't really matter - you see the facility, you see the ease-of-use", he said. Despite all this speculation, Bitcoin has regained bid and increased to $4350 - $4380 earlier this week and the Chinese government has made no reaction to this development.

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