Jamie Dimon responded bitcoin is a fraud and JP morgan staff trading it will be sacked
The investment bank boss said bitcoin is appropriate to collapse and said staff trading the digital currency are «stupid» and discretion be sacked.
The cryptocurrency «won’t end well» because «it’s a fraud,» Mr Dimon told an investor audience in New York.
His commentaries helped fuel a sell-off of the digital money, with bitcoin’s cost out sinking below the $4,000 mark on Wednesday after shedding enveloping $1,000 since the start of September.
The JP Morgan chief said if he start a trader at the bank trading bitcoin he would “fire them in a number two. For two reasons: It’s against our rules, and they’re stupid. And both are dangerous”.
Mr Dimon said bitcoin’s epic lionization is “worse than tulip bulbs,” in reference to speculators in Holland in the 17th century, who determination up prices of almost worthless bulbs.
And added that he wouldn’t coequal short bitcoin — bet on its downfall — because there’s no knowing how high the foam could go before it bursts.
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Mr Dimon confessed that the blockchain technology that underpins bitcoin could be salutary.
But said Governments are unlikely to ever allow a currency to exist without modified oversight.
It comes as China has launched a recent crackdown on local currency reciprocations, which pressured bitcoin’s price.
The JP Morgan boss said the US could be the next boonies to launch a huge clampdown on bitcoin if crimes are linked to trading.
He reportedly prophesied the New York conference: «Someone’s going to get killed and then the government’s present to come down.
“You just saw in China, governments like to control their gelt supply.”
However, experts said Mr Dimon’s comments could be short-sighted.
It fall after lingerie entrepreneur Michelle Mone recently said bitcoin is the currency of the later.
Naeem Aslam, chief market analyst at Think Markets UK, stipulate: «The chief executive of JP Morgan, Jamie Dimon has said that he pleasure not hesitate to fire his traders if they touch Bitcoin.
«The digital currency is here to thwart and under a more regulated environment, its volatility would ease off.
«Further, this is not the first time that Jamie Dimon has spoken against the currency, the after time he had a similar go on the currency was in November 2015.
«Since then, the currency has had a odd run.
«Most importantly, given that the chief executive does not value that shorting this trade would yield a more fitting outcome shows that the cryptocurrency has a lot more room to run.
«The currency suits best people/nations who do not have many options on the table for themselves.»