JPMorgan's Dimon says bitcoin 'is a fraud'

Marco Green
September 13, 2017

JPM, +1.23% CEO Jamie Dimon lit into bitcoin today, calling it a fraud and a mania even more extreme than the tulip craze that gripped 17th-century Holland.

Dimon was speaking at a financial services conference Tuesday when he unloaded on the currency.

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 is going to get killed", Dimon said at a banking industry conference organized by Barclays. "It will blow up". He said he'd fire, on grounds of stupidity, any trader who traded it.

The cryptocurrency "won't end well", he told an investor conference in NY on Tuesday, predicting it will eventually blow up.

It's no secret JPMorgan Chase Chief Executive Jamie Dimon doesn't like Bitcoin.

Dimon may also be on the other side of another bitcoin trade closer to home.

Banks and other financial institutions have been concerned over bitcoin's early association with online crime and money laundering.

Bitcoin has soared in recent months, spurred by greater acceptance of the blockchain technology that underpins the exchange method and optimism that faster transaction times will encourage broader use of the cryptocurrency.

The supply of bitcoin is meant to be limited to 21 million, but there are clones of the virtual currency in circulation which have made the market for it more volatile. Still, he said banks' application of blockchain "won't be overnight". "Don't ask me to short it". "It could be at $20,000 before this happens, but it will eventually blow up".

Bitcoin, which has surged to more than $4,000 this year from $998 on January 1, 2017, fell slightly on the remarks.

Other reports by Click Lancashire

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