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JPMorgan's Jamie Dimon Says Cryptocurrency a Fraud, Bound to Fail

posted by martyb on Friday September 15 2017, @04:27AM   Printer-friendly
from the check-back-in-ten-years dept.

Geezer writes:

In a recent Reuters story http://www.reuters.com/article/us-usa-banks-conference-jpmorgan/jpmorgans-dimon-says-bitcoin-is-a-fraud-idUSKCN1BN2KP, JPMorgan's Jamie Dimon threw a bomb at the emerging cryptocurrency.

In the story he states, "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."

He goes on to compare Bitcoin to the 17th-century Dutch tulip bulb situation.

Is he right, or is he just shilling for the present system of imaginary-value fiat currencies?

[Separately, according to Bloomberg, Bitcoin has been on a five-day decline: Bitcoin Crashes After Chinese Exchange Says It Will Halt Trading. --Ed.].

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  • (Score: 2) by jimshatt on Friday September 15 2017, @10:19AM (1 child)

    by jimshatt (978) on Friday September 15 2017, @10:19AM (#568362) Journal
    BitCoin itself isn't a pyramid scheme, but the exchanges like Coinbase etc. are. The exchange rates are controlled by the pyramid scheme that is run by them, and you can buy into. At the bottom row, of course.
    But you could do that with anything. Pieces of metal, or just signed paper, anything. The real value of cryprocurrency is the scarcity and anonymity upon which its intrinsic value should be based. We'll have to wait and see what the value of BTC stabilizes to after the pyramid schemes around it are done.
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  • (Score: 0) by Anonymous Coward on Friday September 15 2017, @02:48PM

    by Anonymous Coward on Friday September 15 2017, @02:48PM (#568463)

    BitCoin itself isn't a pyramid scheme, but the exchanges like Coinbase etc. are.

    How are EXCHANGES a pyramid scheme? Exchanges generally maintain two public lists, one for buyers and one for sellers. When someone accepts an offer on either of those two lists, the price they agreed to can be used to calculate the average price of whatever it is the exchange is dealing in, also known as the exchange rate.

    Pyramid schemes rely on exponential growth by scamming a percentage of money from newcomers to transfer to those at the top of the pyramid. You may be confusing a pyramid scheme with the benefits that come by being an early adopter of a typical currency, in that early adopters tend to acquire a lot of the relatively worthless currency which could increase in price if the currency later becomes popular.