from The Daily Bell:
JP Morgan CEO Jamie Dimon commented that he thinks Bitcoin is a fraud, and that “it will eventually be closed.”
CNBC continues its amazing economic news coverage with his interview.
Yes, the CEO of a major financial institution thinks Bitcoin will be “closed.”
Look, however unlikely, it is possible that the Bitcoin price goes to $0. It is not, however, anywhere within the realm of possibilities that the crypto-currency will be “closed” as Dimon put it.
This is because there is nothing to close. It is not a business. It is not owned by anyone except a vast and disunited network of Bitcoin miners and those who own Bitcoins.
So again, miners could conceivably shut off their computers. People who hold Bitcoin could conceivably sell off at such a rate that the price crumbles. But no one can “close” the cryptocurrency.
If you listen to his complete remarks, what he seems to mean is that governments will crack down on Bitcoin when it becomes too popular.
“Wait until someone gets hurt, or wait until it is used for illicit purposes–which it is somewhat used for illicit purposes–[governments] will close it down.”
Governments can shut businesses down, but they cannot shut Bitcoin down. It is too decentralized. They can make it illegal to buy, sell, or trade, Bitcoin, like China did. And yes, that had an impact on the price. But that is not the same as shutting it down.
That is shutting it down in the same sense that the U.S. government shut down liquor sales during prohibition. They didn’t. But they did increase corruption, give rise to organized crime, and allow some people to get rich off the black market for alcohol.