Jamie Dimon: ‘Fraud’ bitcoin could surge to $100k before it collapses

Bitcoiners, like advocates of marijuana, are ardent in their support for the peer-to-peer decentralized digital currency. If you dare criticize any aspect of the virtual currency or the blockchain, then you will face the consequences of your remarks.

JPMorgan Chase & Co. CEO Jamie Dimon warned this week that bitcoin is a “fraud,” but he noted that the cryptocurrency could spike to $100,000 before it collapses.

Speaking at an investor conference in New York on Tuesday, reports Fortune magazine, Dimon averred that bitcoin “won’t end well” and will eventually blow up because “it’s a fraud.”

“If you’re in Venezuela or Ecuador, or North Korea, you’re better off probably using Bitcoin than using their currency. That can’t possibly be true in the United States unless you’re speculating, and that isn’t a reason to say something has value,” he said.

“I’m not saying go short… Bitcoin can go $100,000 a bitcoin before it goes down, so this is not advice on what to do.”

Ultimately, according to Dimon, bitcoin is “worse than tulip bulbs.”

He also revealed that he would fire any employee who traded bitcoin because “it’s against our rules, and they’re stupid. And both are dangerous.”

The blockchain is unique and should be celebrated, but bitcoin is something entirely different. First, bitcoin is just like any other product: there will always be something better in the future. Second, bitcoin is not a libertarian currency: the authorities can still monitor and track the virtual currency. Third, bitcoin is in a bubble, no matter how many times advocates say it isn’t.

In the end, bitcoin investors rely on new investors to help keep it afloat – just like a Ponzi scheme. The early traders made and continue to make a killing. But what happens when investors get in when bitcoin touches $10,000 or $100,000?

Want an investment that comes with anonymity and inherent value? Gold is your best bet.

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