“Governments Will Step In and Shut Down the Cryptocurrency Industry,” says JPMorgan’s Jamie Dimon
Just a few days after he first expressed his disapproval in cryptocurrencies, Jamie Dimon, the CEO of JPMorgan Chase, added more fire to his statements. During an interview conducted by CNBC-TV18 in New Delhi, India, Dimon cautioned against investing in bitcoin and the other digital currencies, saying that government intervention is likely to occur once the industry grows too large.
JPMorgan Chase & Co. is the largest bank in the United States. It is ranked third as the bank with the most assets in the world, reaching up to 2.5 trillion USD. It’s also ranked second as the most valuable bank in market capitalization, after ICBC.
Cryptocurriencies are a novelty, but it ends there
In the interview, Jamie Dimon acknowledged the novelty of the industry, but continued to stick with his initial statement that it is creating something out of nothing. To him, it is worth nothing and it will end badly. The statement seemed to be directed at the main players in the world of cryptocurrency, like Bitcoin and Ethereum, which are major contributors to the rise and rapid growth of the industry.
Government intervention is just around the corner, he suggests
He went on to predict how governments may try to contain and control the growth of cryptocurrencies, wherein anyone who participates in the trade of bitcoin will be subject to imprisonment, driving back the industry into the area of the black market.
A few weeks prior to this interview, he publicly made negative comments against bitcoin, labeling cryptocurrencies as a “fraud.” In the succeeding days, the price of bitcoin dropped from $4340 to $3000, indicating the weight of his words to investors all over the world. Bitcoin has since recovered to $3640, but the damage of his statement to the industry remains prominent. Despite these drastic rise and falls, it is notable that the value of bitcoin has more than doubled since the start of 2017.
Perhaps inevitably, Dimon’s comments enraged several investors in the industry. The chairman of Sweetbridge, a blockchain company, said that comments like Jamie’s show the incapability to understand the importance of blockchain and the brand power in an essential sea of change. It was also reported that a company known as Blockswater sued Jamie Dimon for spreading fabricated information regarding Bitcoin.
Cryptocurrencies are creating money out of thin air, without the government’s consent
Dimon’s criticisms do not end here. He recounts his experience with JPMorgan, wherein trillions of dollars are circulated around the world every day in a quiet, efficient, and effective manner. He proceeds to say that this is possible because the money is created with the government’s backing, unlike how it is with cryptocurrencies. This lack of government backing would serve as the spark and the main cause of the government’s intervention.