Following the reports that China may potentially ban all new transactions, bitcoin took another hit on Wednesday after JPMorgan’s CEO called the cryptocurrency a “fraud” that will eventually “blow up.”
Following the reports that China may potentially ban all new transactions, bitcoin took another hit on Wednesday (September 13) after the CEO of JPMorgan, Jamie Dimon called the burgeoning cryptocurrency a “fraud” that will eventually “blow up.”
The verbal attack from Dimon was so strong that Bloomberg even reported he said any of his employees trading in bitcoin would be fired for being stupid. “I’d fire them in a second. For two reasons: It’s against our rules, and they’re stupid. And both are dangerous,” he said.
During an investor conference in New York, Dimon called the cryptocurrency a “fraud” and compared its trajectory and eventual doom to the famous tulip bulb rush seen in 17th century Holland as its prices saw a massive inflation before a massive crash.
Dimon’s words caused the price of bitcoin to dropped over 10 percent, the second time this week it has suffered a substantial decline. The cryptocurrency is currently valued below $4,000. The first time that has been the case in over a month, according to a report from Vice News.
JPMorgan CEO would fire any employee trading in bitcoin
Dimon did provide scenarios where he thinks bitcoin earns its value.
“If you were in Venezuela or Ecuador or North Korea or a bunch of parts like that, or if you were a drug dealer, a murderer, stuff like that, you are better off doing it in bitcoin than U.S. dollars,” Dimon added. “So there may be a market for that, but it would be a limited market.”
James Butterfill, head of research and investment strategy at ETF Securities in London told Reuters the comments from Dimon could be a tipping point for the general outlook on bitcoin
Despite the decrease thanks to Dimon’s comments, ThinkMarkets analyst Naeem Aslam told Reuters also, this isn’t the first time he has done so.
“[T]he last time he had a similar go on the currency was in November 2015,” Aslam said. “Since then, the currency has had a remarkable run.”
In the end, Dimon admitted that one of his own daughters invested early in bitcoin, and has seen the profits. [Dimon] told the conference that one of his daughters bought
Despite the tough words for bitcoin, someone very close to Dimon has a weighted interest in the cryptocurrency’s success. “[Dimon] told the conference that one of his daughters bought bitcoin and is sitting on tidy profits. ‘Now she thinks she’s a genius,'” a report from Quartz indicated.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.