Jamie Dimon Back to criticising Bitcoin and Cryptocurrency
Jamie Dimon is taking shots at Bitcoin yet again. From saying that Bitcoin is nothing but a fraud, to buying Bitcoin on the dips created by the Crash, Dimon is creating quite infamous in the Bitcoin community.
The likes of the CEO of JP Morgan making such comments drove quite a few people crazy. However, it seems as if Jamie Dimon was not finished yet. In an interview in New Delhi, Dimon was saying that cryptocurrencies to him are "worth nothing".
He was also of the view that as the cryptocurrency market expands, so will the efforts by the governments to control them. He also thought that governments will eventually take steps to ban the crypto currencies outright. He also thinks that those that use the cryptocurrencies could eventually face jail time if they continued. These comments were of course also being made in the context of China shutting down their exchanges last week.
A Lack of Understanding?
Jamie Dimon also claimed that cryptocurrencies such as Bitcoin are created "out of thin air". The reporter seemed to take issue with that statement and reminded Mr Dimon that this was similar for all Fiat currencies.
Dimon countered that assertion by mentioning that all Fiat currency has legal tender at the central bank. It is backed by the country and as such should be linked to the effectiveness. For example, the he claimed that the Dollar is backed by the US economy of the United States whereas Bitcoin is governed by a protocol. He said
Creating money out of thin air without government backing is very different from money with government backing.
What seems to have most cryptocurrency enthusiasts scratching their heads is that Jamie Dimon seems to be at odds with individuals in his bank. It was revealed that last week, JP Morgan bought a Bitcoin derivative on the Stockholm Nasdaq exchange even after condemning it. This has resulted in a firm laying a charge against Jamie Dimon for market manipulation.
Apart from profiting from the fall created by their CEO, JP Morgan is also one of the sponsors of the Ethereum alliance which connects many of the world's largest companies with the Ethereum foundation as well as education in the industry.
One can only wonder then why a CEO is making these statements when the actions of the firm is diametrically opposed to the comments being made. Either he is so disconnected from his firm that they can't be on the same page or he is trying to manipulate the market. Neither of these reflect strongly on Mr Dimon.
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Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.