Many financial watchdogs have issued a warning about the risks of cryptocurrencies and Initial Coin Offerings (ICOs), JP Morgan Chase CEO leveled harsh criticism about the cryptocurrency Bitcoin. JP Morgan CEO says Bitcoin is fraud, but what are his arguments?
13 September, AtoZForex - JP Morgan Chase chief executive sharply condemned cryptocurrency Bitcoin as a fraud. He described it as worse than tulip bulbs during a banking industry conference organised by Barclays. Jamie Dimon criticism comes at a time when some well-known figures on Wall Street are starting to embrace the cryptocurrency.
JP Morgan CEO says Bitcoin is fraud
He was quoted as saying "It's worse than tulip bulbs. It won't end well and will blow up. Someone is going to get killed." “The currency isn’t going to work. You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart,” he added.
Dimon added that he would terminate any trader that he found to be trading bitcoin for being "stupid." “I would fire them in a second for two reasons. It is against our rules and they are stupid, and both are dangerous.” Later, he joked that even his daughter bought some bitcoin, looking to cash in on a trend that has seen it soar more than 300 percent this year.
Decline in Bitcoin Price after Dimon condemnation
Dimon’s comments come as the Bitcoin has more than quadrupled in value since December to more than $4,100. In the wake of his speech, some observers noted that Bitcoin prices started to fall after Dimon's remarks. Earlier, Dimon warned about further declines in trading revenue for the banking giant.
Other factors likely shaping the market are continued fears that China will move to close domestic cryptocurrency exchanges, a state of affairs that has already led at least one trading platform to freeze its operations. Bitcoin fell to its session lows after the CEO comments. In New York, it traded at $4,106.23, down two percent. The latest developments haven't been positive for Bitcoin, yet will the cryptocurrency still be able able to recover and surge to the forecasted Bitcoin price $15,000 in 2020 by analysts?
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