On Tuesday afternoon, Jamie Dimon, the CEO of banking giant JP Morgan, let loose on Bitcoin.
He was speaking at the Barclays Financial Services conference, and when asked whether his bank employs any Bitcoin traders, he responded-
“If we had a trader who traded Bitcoin, I’d fire them in a second,” calling any trader who deals in the cryptocurrency “stupid”.
He went on to say that Bitcoin is a “fraud” and “won’t end well”.
Now, Dimon is a brilliant executive and banker. He knows his stuff. But… fraud? Really?
My dictionary defines fraud as “wrongful or criminal deception intended to result in financial or personal gain.”
That term seems to more aptly describe the banking industry that Dimon represents.
From Wells Fargo’s illegal opening of fake customer accounts to the constant manipulation of interest rates, exchange rates, and asset prices, outright FRAUD is standard practice among big banks.
Dimon also stated that Bitcoin is primarily appealing for criminals– “if you were a drug dealer, a murderer, stuff like that. . .”
Again, this is a totally baseless and confounding statement. 10+ million Bitcoin users are drawn to the cryptocurrency for a multitude of reasons.
For some, the fact that it is decentralized is a major factor. For others, it’s the low transaction cost.
Sending an international wire transfer through the banking system, for example, can take three days and cost $100. With Bitcoin it takes an hour and costs less than a dollar.
Sure, criminals might use Bitcoin. They also use Amazon.com gift cards and government bonds.
Ironically for Jamie Dimon, criminals even use JP Morgan bank accounts to launder their money, considering that the bank has paid BILLIONS in fines over the last few years for failing to detect their customers’ illegal activities.