JPMorgan's Dimon calls bitcoin a 'fraud'

Lloyd Doyle
September 13, 2017

JPMorgan's CEO Jamie Dimon has some harsh words about the poster child for cryptocurrencies today, calling bitcoin a "fraud" at a Barclay's banking conference.

Dimon was speaking at a financial services conference Tuesday when he unloaded on the currency.

"It won't end well", Dimon added. "Someone's going to get killed and then the government's going to come down... It will blow up".

Dimon, however, isn't the only figure warning about the bitcoin bubble; United Kingdom financial watchdog the Financial Conduct Authority issued a striking warning today to those investing in cryptocurrencies.

CBOE has applied with US regulators to launch a bitcoin futures contract and a bitcoin exchange traded fund on its venues.

Dimon isn't alone in being skeptical of bitcoin.

Since December, bitcoin's value has increased four-fold, on the growing use of blockchain technology, which records bitcoin transactions. Believers can bet on its rise, and Dimon is welcome to take the other side, he said.

Banks have avoided getting involved in bitcoin because of those types of connections to illegal online activity and money laundering. "So there may be a market for that, but it'd be a limited market". Still, he said banks' application of blockchain "won't be overnight".

Dimon predicted big losses for bitcoin buyers.

"Honestly, I am just shocked that anyone can't see it for what it is".

Bitcoin, which has surged to more than $4,000 this year from $998 on January 1, 2017, fell slightly on the remarks.

"It feels like we are in the midst of a negative news cycle, but even considering all this, we are still trading above $4,000." said John Spallanzani, chief macro strategist at GFI Group.

Other reports by Iphone Fresh

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