JP Morgan CEO, Jamie Dimon called bitcoin a "fraud" according to Bloomberg. This coming after China's "ban" on ICO's which has brought the price of bitcoin under $4000 for the first time in a while.
“I’d fire them in a second. For two reasons: It’s against our rules, and they’re stupid. And both are dangerous."
Dimon said about any trader caught trading bitcoin on his watch, however the only reasoning beyond "stupid" he had to offer was evidence of his clear and obvious misunderstanding of bitcoin and digital currency in general.
He compared bitcoin to "tulip bulbs" stating that things would "end badly" referencing an "end" being governments "allowing" bitcoin to continue to exist.
Who Has Choice?
Dimon is of the opinion the a government can just easily "close it down" (his words about bitcoin).
First off, "governments" really don't have much of a say in bitcoin being in existence or not, neither does anyone, any company, or anything other than the entire community that supports it. So that statement doesn't hold allot of water.
Sure, they can regulate the hell of it, even ban it all together, but as we've seen with such attempts, folks either conform to regulatory requirements and continue to trade or disregard them all-together. As far as banning, it's no different, you can say it's "illegal" but you can't catch the millions of people that would continue to trade the crypto-currency.
Secondly, we have to keep in mind that this is a CEO of a bank, one of the entities commonly hated by bitcoin enthusiasts. I can't think of many good things, if any, ever said about bitcoin by any executive of a bank, it's been negativity for nearly a decade.
Third, let's remember that this is also the CEO of a bank that took a 12 BILLION dollar BAIL OUT in 2008 to keep afloat all while continue to pad their executives wallets quite handsomely.
That entire ordeal is allot of the reason bitcoin exists in the first place.
Fourth, Dimon states that bitcoin might be used for "illicit" activity in which case it'll be shot down. Seriously? What planet does this guy live on? "Might be"? Just like every single other payment method and/or currency on the planet, bitcoin is also used for illicit activity.
That said, credit cards and cash dominate the "illicit activity" market by far. Bitcoin and all crypto-currencies combined don't even scratch the surface in comparison.
It's A Bubble!!
Well in all fairness, he does have a slight point here, the price was well over $4,000 USD when he said this and it had no realistic business being there. Somewhere between $2500 and $3000 is honestly where the current valuation should be according to many and this can be agreed on to some degree. However, that accounts for a only a portion of the value which is still far more than double the value of a year ago and about what was expected. Dimon's been saying "bubble" since bitcoin was at $400.
He's the problem with the long-time "haters" [bitcoin and/or digital currency haters], if you sit there and say any asset on earth is going to decrease in value long enough, eventually it's going to happen due fluctuations in price. One can sit there and say Amazon.com stock it going to lose $100 and continue to say that for the next 8 years and eventually at some point in time this is going to be a correct statement. That doesn't make it suck.
Moreover, it's not a decrease in value these folks are hoping for, they state total and complete death and destruction and the END of bitcoin.
Again .. that's from a banker and a banker who just happens to be the CEO of JP Morgan. So...
SHOCKER THERE!
Additionally Dimon states that the underlying technology of bitcoin, blockchain technology, is "years away" from the ability to be used. Maybe that's why he wants bitcoin to die, so he'd be right about that statement, because as it sits, he might not have noticed but that technology, blockchain technology, has been going strong for about .... 8 years now.
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