Bank Boss Says Bitcoin's a Scam Doomed to Crash

By Gary Cutlack on at

The boss of banking firm JP Morgan isn't exactly convinced that Bitcoin is anything more than a minor bubble, suggesting that the cryptocurrency is doomed -- and should only be used by criminals anyway.

This comes from Jamie Dimon, who was speaking at a banking conference in New York. His explanation of the merits of Bitcoin started off negative, when he said: "The currency isn’t going to work. You can't have a business where people can invent a currency out of thin air and think that people who are buying it are really smart."

And that was him putting it nicely. He then completely went off on one, adding: "If you were in Venezuela or Ecuador or North Korea or a bunch of parts like that, or if you were a drug dealer, a murderer, stuff like that, you are better off doing it in bitcoin than US dollars," saying that it's a limited market and clearly not a good one for the banking industry to get involved with.

He said more too, comparing today's Bitcoin fever to the Tulip Mania financial crisis of the 1600s. In short, keep your spare money in an ISA even if you only get 0.05 per cent interest, says the banking man, because he wants your savings to use to gamble on the stock market. [Guardian]

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