JPMorgan Chief Executive warns against growth of Bitcoin and other Cryptocurrencies

Jamie Dimon JPMorgan

His comments, which echoed other prominent investors, caused the Bitcoin price to fall from $4,340 to as low as $2,981. Bitcoin has since recovered.

Jamie Dimon has once again sounded a warning regarding the growth of Bitcoin and Crytocurrencies in a recent interview, concerned that with Bitcoin, Ethereum and various Initial Coin Offerings (ICOs), Cryptocurrencies are everywhere and that might move governments to shut them down.

“It’s creating something out of nothing that to me is worth nothing, It will end badly.” Is what he predicts – that governments will attempt to control Cryptocurrencies, resulting in a crackdown which will send digital currencies into the black market.

This is on top of what Dimon had said earlier this month when he talked about how Cryptocurrencies were ‘a fraud’. His comments, which echoed other prominent investors, caused the Bitcoin price to fall from $4,340 to as low as $2,981 – almost half their value in the days after the remarks. Bitcoin has since recovered, steady at $3,640 and despite its earlier volatility, the Bitcoin has risen 264% this year alone.

As much as there was support for what Jamie said, his comments received backlash from other experts in the field. Scoot Nelson, CEO of Sweetbridge – a Blockchain company said that Jamie Dimon’s comments show a failure to grasp the significance of the Blockchain and the power of brand, while another company Blockswater has filed a market abuse complaint in Sweden against JPMorgan and Dimon.

In the same interview, Dimon has criticized the Bitcoin as neither formed by a government nor backed by a central bank, making it hard for banks to view it as legal tender.

“With central banks, (the money) says legal tender: you have to take this as payment. It’s very cheap to do; it’s very easy to move back and forth. JPMorgan moves $6 trillion around the world every day very efficiently, very quietly, very effectively and very cost efficient, creating money out of thin air without government backing is very different from money with government backing.”

Yet at the same time, Dimon praised the Blockchain technology behind Bitcoin, saying that this same technology can be used for digital dollars – something which are banks are presently holding.

Photo Credit: Fortune Live Media


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