JPMorgan Chase CEO Jamie Dimon says that cryptocurrency Bitcoin is “a fraud” that “won’t end well”.
Dimon told an investor conference in New York on Tuesday that where currencies have legal support, Bitcoin would eventually blow up. “It’s a fraud” and “worse than tulip bulbs,” Bloomberg reported.
Tulips are a reference to the mania that swept Holland in the 17th century, with speculators driving up prices of virtually worthless tulip bulbs to exorbitant levels. That didn’t end well, the news agency said.
Dimon said that if a JPMorgan trader began trading in Bitcoin, “I’d fire them in a second. For two reasons: It’s against our rules, and they’re stupid. And both are dangerous.”
“I’m not saying go short Bitcoin and sell $100,000 of Bitcoin before it goes down. This is not advice of what to do. My daughter bought Bitcoin, it went up, and now she thinks she’s a genius.”
The analyst’s comments come after Bitcoin has soared in recent months, climbing more than four-fold this year – a run that has drawn debate over whether that’s a bubble, Bloomberg said.
Dimon did differentiate between the Bitcoin currency and the underlying blockchain technology, which he said can be useful. Still, he said banks’ application of blockchain “won’t be overnight.”