Is bitcoin headed for a reckoning?


Jamie Dimon, CEO of the financial behemoth JPMorgan Chase, is not a fan of bitcoin.

“It’s a fraud,” he told a conference on Tuesday. He went on to slam bitcoin as “worse than tulip bulbs” — a reference to the infamous Dutch bubble of 1637.

The digital currency, which is highly encrypted and isn’t overseen by any government or central bank, has seen a spectacular run-up in value over the past few months. A single bitcoin is now worth about $4,200. That’s fueled speculation that the cryptocurrency is in a bubble, and headed for a crash. Dimon thinks bitcoin’s extra-legal nature — which makes it potentially attractive to criminals — is going to come around to bite it. “Someone’s going to get killed and then the government’s going to come down,” he said. And if any JPMorgan trader began trading in bitcoins, “I’d fire them in a second,” he declared.

So is he right? Is bitcoin headed for a crackup, and are the people investing in it fools? The answer might well come down to whether bitcoin can adapt.

At least in one respect, Dimon is probably correct. “Governments like to control their money supply,” as he put it. …read more

Source:: The Week – Business

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