Just a few days following the last time JPMorgan Bank CEO Jamie Dimon slammed cryptocurrencies, he’s back at it again. One of Wall Street’s most well-known executives said that bitcoin and other cryptocurrencies could be growing too large. He cautioned that governments may start playing god and shutting down currency exchanges. His most recent comments come right after he said last month on how skeptical he was of the cryptocurrency industry.
Dimon expressed that his view on cryptocurrency “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….It’s creating something out of nothing that to me is worth nothing…It will end badly.”
Simon is assuming that governments will make a move to end up coming into the market and taking an authoritative approach to limit cryptocurrency and limit trading of cryptocurrency. We’ve already seen it first hand with the country of China putting the halt on both trading and ICO-ing of cryptocurrencies. Simon stresses that whoever buys or sells things like bitcoin may be opening the door to going to prison. This would force the world of cryptocurrency to become illegal and a space for back market transactions.
Dimon, in the past, has gone so far as to call bitcoin a fraud. A single bitcoin dropped in price from over $4,300 to under $3,000. Coincidentally this drop happened right after he made his first round of comments about cryptocurrency. The overall value of of bitcoin has climbed this year even in spite of the recent decline in price.
“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. Creating money out of thin air without government backing is very different from money with government backing.”