Do You Trust What JP Morgan CEO Says About Bitcoin?

TDB's picture

Via 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.

So why listen to this guy? Because he is the CEO of JP Morgan? So he has had some success in trading and manipulating fiat currency. Should we believe him that Bitcoin is a “novelty”?

History has some hilarious examples that show we should take these predictions with a grain of salt.

1903: “The horse is here to stay but the automobile is only a novelty – a fad.” — President of the Michigan Savings Bank advising Henry Ford’s lawyer, Horace Rackham, not to invest in the Ford Motor Company.

But even a broken clock is right twice a day. Dimon correctly sees the benefit of crypto-currencies for people living under oppressive governments. The Daily Bell has previously reported on a Bitcoin funded escape from Venezuela.

“If you were in Venezuela or Equador or North Korea you’re better off probably using Bitcoin than using their currency. That can’t possibly be true in the United States, unless you’re speculating. And that isn’t a reason to say something has value. Because other people are gonna speculate. That’s tulip.

What he’s referring to is the Tulip Mania. Prices for the bulbs of the newly introduced flower skyrocketed in the Netherlands in 1636. Everyone wanted to get in on the rising prices, and rampant speculation sent the price even higher. But then the price collapsed, because people weren’t buying tulips for the flowers, they were only buying tulips for the speculative potential.

There is some element of truth to this for Bitcoin today. In many cases, people are buying the crypto-currency not to invest long term, nor as a hedge, nor as an actual medium of exchange. It’s the promise of making a few quick bucks due to the price fluctuation.

The difference is that some people actually are using Bitcoin as a medium of exchange. As Dimon points out, some of this commerce is illicit. But that should only lend more credence to the fact the currency is useful. As long as governments will push certain things onto black markets, there will be an incentive to use an alternative to their currencies as well.

Some people thought that cars had little practical application, and that the internet was basically a useless toy. In the early stages, they were right, but they couldn’t see the future potential.

Dimon went on to say “[Bitcoin] is just not a real thing, and eventually, it will be the emperor with no clothes.”

But what then is the U.S. dollar? What is the entire banking industry which Dimon and JP Morgan represent?

This is what is so aggravating about people who are always trying to save us from ourselves. He says the government would shut Bitcoin down when someone gets hurt, like they are going to protect the consumer from shady financial transactions.

JP Morgan received a government bailout after participating in shady loans and being reckless with deposits. The U.S. dollar is the biggest scam in currency, propped up only by its acceptance and U.S. might.

Talk about an emperor with no clothes! The whole financial system could collapse if one kid yells, “He’s naked!”

And that is when Bitcoin would be quite the asset to hold.

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opport.knocks's picture

Based on past behaviour there are two obvious options:

<<< a) JPM missed the last big run up and want to talk Bitcoin down so they can acquire a cheaper position.

<<< b) JPM are annoyed that Bitcoin is competing for cash that is needed for their own sponsored financial Ponzis.

Sovereign Economist's picture

Folks, let's just remember that, regardless of what we think of this guy, he IS one of the MAIN cogs in the NWO Globalist Banker ELITE CROWD. So, BITCOIN is their sworn enemy because it devolves power from these bankers. Don't underestimate the man's words but, instead, consider them a herald of what is to come in the way of opposition and hurdles for Bitcoin and other non-statist, non-megabanker issued cryptos from the horse's mouth himself.

Until cryptos can COMPLETELY replace our need for statist, fiat, currencies, to the degree we have any dependence, whatsoever on these statist, fiat instruments, the cryptos are extremely vulnerable. All Dimon and his gang have to do is to embargo any fiat flight into, or out of cryptos at the conversion point, and they are strangled -- unless you can break your dollar addiction dependency 100% and survive exclusively in a crypto exchange world. And, sadly -- we are nowhere near there yet.

Hugh Mann's picture

If you want to gamble, visit a casino. If you want to invest, invest in tangible items. The Bitcoin is fiat, backed by nothing and heavily manipulated as witnessed by radical swings in price. Invest in the future. Invest in precious metals, toiletries, tobacco, weed, alcohol, anything that could be used for trade. When the shit hits the fan, do you honestly believe there will be an internet or postal service? How are you going to spend digital money? IMHO, the banksters want a digital dollar for ultimate control of the masses. "Give me control of the money and I care not who makes the laws." Need an example? Take a good look at the rampant corruption today. Monetary systems are designed for slavery and all of them eventually fail for a good reason. 

veritas semper vinces's picture

I think Jamie Dimon is lobbying for a place in the government.I mean,JP Morgan has the right to be there too,not only the Goldman Sachs boys?

spqrusa's picture

Pot (Dimon) meet Kettle (Fed).

The biggest SCAM in American History is the Fed not Bitcoin.

opport.knocks's picture

Monopolies do not like competition.

spqrusa's picture

Pot (Dimon) meet Kettle (Fed).

The biggest SCAM in American History is the Fed not Bitcoin.

Ilmarinen's picture

He's the CEO of a major bank and his name is pronounced "DEMON".  Need I say more?

rphb's picture

his name is pronounced Diamond, and yes, I trust him on this. Because he is only saying what I have said for a long time, and anyone with a little brain, and the ability to think independently (a rare skill I know) is able to see Bitcoin for the scam it is.

Ilmarinen's picture

I was attempting humor with the pronounciation part :P

I fail to see how BTC is a scam or fraud, though.  I could understand if you thought it was massively overvalued, but so long as 2 parties are willing to exchange the BTC of one for the goods/services/fiat of the other it seems legit to me.

Lego Brave's picture

I don't trust Jamie Dimon... but, I got out of crypto because I have a well established family and business and life. It's not worth the risk.

WHEN governments start coming after crypto, hide or not. It's just not worth the risk.

Glad metals are up so far :) Kinda wish they were not though. I dont like buying appreciating assets... only declining ones. Contrarian view here.

Global Douche's picture

Understand this.. There IS crypto coming up in your life, like it or not! Which will you embrace? I'm not for tax evasion and have reported my crypto profits to the IRS when taken in the past. Doing so means I'm perfectly open to verbally bash my state and fed representatives for what it's worth, and most of them clearly deserve my contempt!

There's already a War on Ca$h. Will you stand up to keep your cash as valuable, or will that evaporate because the whole populace drinks the wrong Kool-Aid and blindly follows yet another horrible law, likely shoehorned then swept under the rug, as was the Federal Reserve when it came into existence over a century ago.

Bankers, the Chinese, others are looking at crypto which THEY control and THEY and the government can take away from YOU without even benefit of a warrant or your day in Court. They'll make the IRS look like schoolkid pranksters in comparison. The IRS helps the little man damned little when they bring vague "guidance" regarding cryptos. At least a representative or two are trying to do something about it, although I give it a lukewarm chance of passing.

Nobody said freedom was free, this applies to your money as well. THINK ABOUT IT!

p.s., the metals want to RUN! I sincerely pray the CRIMEX gets a non-delivery where the market susses it out. This Ponzi has gone on way too long and it's time for Uncle Sam to take that horrible tasting medicine he's refused. We can't seem to take away his credit card.

koan's picture

To say it's a fraud would mean Bitcoin creator or the miners made claims that aren't true.
They didn't.

IMO all BTC is, is a way to digitize your dollars.
Will it get shut down? Maybe, it's been legitimized to a degree so maybe not, but we all know the "world banking cartel" would never allow a functioning currency out of their control.
Just ask the Nazis about that.

Conax's picture

Shit, he's probably been buying and stacking them 'coins' just like the silver mountain he's backed up since '11. 

He just wants to buy more so he talks it down, just like he does silver and gold.

aloha_snakbar's picture

The Birth of Bitcon

Two friends, Bob and Satosh are sitting around after an evening of consuming copious amounts of some especially wicked dank. Bob says to Satosh:

Hey Satosh... I have a genius idea

Yeah, what is it?

You know that app you coded...the one that churns out the useless SHA algorithms?

Yeah?

LOL...lets sell them as digital currencies!

Dude...you are fucking wasted, here, have another bong

No, seriously. We get that graphic artist you know create a slick image of a 'gold' coin, and then we can further confuse the rubes by telling them their 'coins' have to be "mined", as if they were real, physical metals!

Dude... you are insane! What kind of moron would buy something like that?

Bob: Oh... I dont know. Remember that now worthless token you paid stupid money for on WoW?

They sit there and stare at each other for a moment, and then both burst out into torrents of tear stained laughter

They are still laughing today.

The rest is history

"On a long enough timeline, the price of all cryptos drops to zero"

prudent1nvestor's picture

"Jamie Dimon has had an internal "Blockchain Working Group" for over 2 years at JPMorgan & my friend is on it. Basically, he's full of shit." Charlie Shrem

LePereMersenne's picture

I was seriously thinking about selling my small BTC holdings until I saw that.

A JP Morgan exec and Wall Street Banker giving advice. I'm sure he has our best interests at heart

Sabibaby's picture

If it's a small holding what's the harm in keeping it?

 

I "forgot" about my bitcoins for two years. Originally needed to use them to buy a prescription that was way to expensive hear in the US. So I did what I did, forgot about the left over bitcoins, came back in May when the news was yammering on about bitcoin and WOW was I surprised!!! 

onthedeschutes's picture

Jamie Dimon would sell his own mother for the right price.  Trust anything coming out of JP Morgan or Dimon?  What a fuckin joke.

GRDguy's picture

Trust? No way. Old saying:

"Behind every great fortune lies a great crime."

Honore de Balzac (1799-1850)

Two Theives and a Liar's picture

Would anyone be surprised if next to the warehouse that holds the MANY tons of silver bullion JP Morgan has stashed...is another warehouse full of very powerful computers mining bitcoin. 

When a banker like a Dimon or a Blankfein sez "Nothing to see" is when I get a magnifying glass!

DrData02's picture

Dimon is a pirate and should be in prison.

Shitonya Serfs's picture

I wish the Internet was still a useless toy. Back then everyone was skeptical and if AOL/CompuServe asked for 1 millionth of the info that FB does, the AOL would have died instantly.

Keylogging was seen an issue, same with spyware, cookies, popups, etc.

You could mostly "trust" the news you found on there, because it was sort of scarce and back then MSM was trying to compete with each other for an "honest" story...not just reading off CIA/AP/Moosad scripts.

Simpler times.

Stackers's picture

I wouldnt trust Jamie to piss on a burning cat.

eclectic syncretist's picture

What Jamie's Jiminy Cricket meant to say was "Cryptocurrencies are a fraud,.... unless I'm in control of them, in which case they will become legal institutionalized frauds, just like the USD".