JPMorgan CEO says Bitcoin is "fraud"

JPMorgan's Dimon: Bitcoin Trading 'Is a Fraud'

Bitcoin dropped as soon as Jamie Dimon called its traders “stupid”

Bitcoin may be the buzzword of the year but some industry veterans are not buying into the hype.

JPMorgan chief, Jamie Dimon, said he would fire any JP Morgan trader who traded Bitcoins because it's against the lender's rules and because it shows they are stupid; furthermore, governments will eventually clamp down on them.

During the conference, e made a controversial statement when he criticized the cryptocurrency. "This is a scam", he assured, adding that a government may decide to put an end to it, because the public authorities like to have the hand on the currency.

He said: 'You can't have a business where people are going to invent a currency out of thin air.

Meanwhile, Dimon told the Delivering Alpha conference presented by CNBC and Institutional Investor, "It's just not a real thing, eventually it will be closed".

Dimon was speaking after Bitkan - one of China's most popular over-the-counter (OTC) cryptocurrency trading services - announced it would suspend OTC Bitcoin and Bitcoin cash trades from Thursday.

JPMorgan CEO Jamie Dimon says bitcoin is worse than the most famous asset bubble in history. Speculators drove the prices of tulip bulbs to astronomic levels, some scholars claim as much as ten times an annual skilled worker's salary for a single bulb. It won't end well. "Someone is going to get killed".

Bitcoin is down roughly 8 per cent since being called a "fraud" by Mr. Dimon on Tuesday afternoon.

Bitcoin is trading back under $US4,000 for the first time in nearly a month.

Notably, though, Dimon's pessimism doesn't extend to blockchain, which is the revolutionary software technology that undergirds bitcoin and other cryptocurrencies. Blockchain is considered the backbone of Bitcoin and was first implemented on it.

After the news spread, based on the data from Bloomberg, many have noticed a drop in bitcoin price.

Followers of his career and of the bank have long wondered who the next CEO would be, given a steady exodus of top managers over the years who could have been contenders but were either too close in age to Dimon or didn't have the right timing. The victor is rewarded with about 25 bitcoins every 10 minutes. The price reached an all-time high on 1 September. Recently, Burger King launched its new cryptocurrency. However, many countries hold different attitudes toward Bitcoin.

The bank chief said he wouldn't short bitcoin because there's no telling how high it will go before it collapses. Get into Bitcoin Trading on the worldwide Bitcoin Exchange.

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