More Blather from Jamie Dimon as Digital Currency Eats his Business

0
367

By Luke Graham

JPMorgan Chief Executive Jamie Dimon has laid into bitcoin (Exchange: BTC=) and digital currencies once again, warning that governments will shut them down if they grow too large. “Right now these crypto things are kind of a novelty. People think they’re kind of neat. But the bigger they get, the more governments are going to close them down,” Dimon said during an interview with CNBC-TV18 in New Delhi, India, on Friday. Dimon was concerned that with bitcoin, ethereum and various Initial Coin Offerings (ICOs), there are now cryptocurrencies everywhere. “It’s creating something out of nothing that to me is worth nothing,” he said. “It will end badly.” Dimon warned that governments will eventually crack down on cryptocurrencies and will attempt to control it by threatening anyone who buys or sells bitcoin with imprisonment, which would force digital currencies into becoming a black market. These are the latest comments from Dimon attacking bitcoin. Earlier this month he called the cryptocurrency a “fraud” . His comments, along with several prominent hedge fund investors, came before a sharp sell-off in bitcoin. The price for one bitcoin fell from around $4,340 to as low as $2,981.05 in the days after his comments. Bitcoin has since recovered to around $3,640.68, according to CoinDesk data. Despite this volatility, bitcoin’s value has risen 264 percent this year. Dimon’s comments came under criticism from several bitcoin investors and experts. “Comments like Jamie’s show a failure to grasp the significance of the blockchain and the power of brand in a fundamental sea of change,” said Scott Nelson, CEO and chairman of blockchain firm Sweetbridge, in an email to CNBC last week. Meanwhile, a company called Blockswater has filed a market abuse complaint in Sweden against Dimon and JPMorgan. Blockswater claims Dimon deliberately spread false and misleading information, according to a report by City A.M.

Money from thin air During the interview on Friday, Dimon also criticized bitcoin for not being a fiat currency formed by a government and backed by a central bank. “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,” he said. “Creating money out of thin air without government backing is very different from money with government backing.” However, Dimon did praise the technology underpinning bitcoin – the blockchain. “Blockchain is a technology that can be used for multiple things, including cryptocurrency. It could be used for digital dollars, and there are digital dollars already; a lot of the dollars held in our bank are digital,” he said. WATCH: Bitcoin mining can land you in jail in this country

SHARE
Previous articleFed keeps U.S. rates Stable, to Begin portfolio drawdown in October
Next articleThe Blockchain Simply Explained
Steve Kanaval Portfolio Manager (Digital Currency) Ault & Company www.ault.com teve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80’s. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90’s managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office. Steve has managed portfolio’s in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve is one of the few managers who publishes his views on the asset classes in a public forum and has published more than 10,000 articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg, Equities.com, Hacked.com, CryptoCurrencyNews as a paid contributor. Ault & Company is a private diversified holding company identifying undervalued public & private companies and disruptive technologies that executes strategies to achieve an above market rate return and liquidity for investors while measuring impact and sustainability principles of their disruptive technology and investment strategies.

LEAVE A REPLY