JP Morgan chief said he would fire any employee that traded Bitcoins
(ShareCast News) - JPMorgan chief, Jamie Dimon, said he would fire any JP Morgan trader who traded Bitcoins because it's against the lender's rules and because it shows they are stupid; furthermore, governments will eventually clamp down on them.
"[I would] fire them in a second. For two reasons: It's against our rules, and they're stupid. And both are dangerous," Dimon said.
"[Bitcoins are] a fraud" and "worse than tullips", he told an investor conference in New York on Tuesday, according to Bloomberg.
The banker was refering to the so-called 'Tulipmania' that gripped 17th century Holland after the first tullips were introduced, which initially saw the price of tullip bulbs rise to as much as ten times a skilled craftsman's annual income, before they crashed back to earth.
Bitcoin prices had run-up more than four-fold year-to-date, as speculators bet that the crypto-currency will continue gaining in value, either because it becomes more widely-accepted as a means for transaction or simply in the hope that they will be able to 'cash-in' before they crash.
Nonetheless, in the background the basic building block behind crypto-currencies, know as 'blockchain' technology, had led various top investment banks to get a move on developing their own versions in the hope that it will speed-up transactions, lower costs and that it is safer from cyber-attacks than other technologies then in use.
Bitcoin slipped as much as 7.55% following Dimon's remarks, and according to Coindesk was trading at $3,834.98 by 13:33 BST.
One of the few arguments in Bitcoin's favour, Dimon said, was that: "If you were in Venezuela or Ecuador or North Korea or a bunch of parts like that, or if you were a drug dealer, a murderer, stuff like that, you are better off doing it in bitcoin than US dollars [...] So there may be a market for that, but it'd be a limited market."
"Someone's going to get killed and then the government's going to come down. You just saw in China, governments like to control their money supply."