JPMorgan's Dimon says bitcoin 'is a fraud'

Bitcoin

Markets Insider

Appearing at a CNBC/Institutional Investor Delivering Alpha conference in New York Tuesday, the executive reiterated his dark view on cryptocurrencies in general, saying that "It's not a real thing". "You can't have a business where people can invent a currency out of thin air and think that people who are buying it are really smart". He added that bitcoin is "a fraud" and "worse than tulip bulbs", and predicted, "It won't end well".

Last week, it slumped after reports that China plans to ban trading of virtual currencies on domestic exchanges, dealing another blow to the $150 billion cryptocurrency market.

Dimon noted that his daughter had bought some, while Tiger Fund CEO Julian Robertson said his son who was "very into Bitcoin" tried to teach him about the topic to no avail.

Banks and other financial institutions have been concerned over bitcoin's early association with online crime and money laundering. Blockchain is a shared ledger of transactions maintained by a network of computers on the internet. However, the bank chief reiterated his belief that bitcoin will one day face the same fate as the Dutch tulip bubble, although it "won't be overnight".

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Financial institutions are hoping blockchain can be adapted to simplify and lower the costs of processes such as securities settlement, loan trading and worldwide money transfers.

If a JPMorgan trader began trading in bitcoin, he said, "I'd fire them in a second". "Maybe I'm just too old, but I'm going to let this mania go on without me".

The remarks aren't a surprise, as Dimon has a long history of being critical of bitcoin, so fans will doubtless comfort themselves with the thought that his prediction that bitcoin will be stopped hasn't happened yet.

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