Dimon Doubles Down: "My Daughter Bought Bitcoin. It Went Up, Now She Thinks She Is A Genius"

Having slammed bitcoin earlier in the day during a Barclays financial conference, calling it a "fraud" which is "worse than tulip bulbs, it won't end well" and that any JPMorgan "trader trading bitcoin" will be "fired for being stupid", the JPM CEO doubled down later in the day during an interview on CNBC's Delivering Alpha conference, saying bitcoin "is just not a real thing, eventually it will be closed."

Making the bitcoin advocates' case for them, Dimon said he’s skeptical authorities will allow a currency to exist without state oversight, especially if something goes wrong. “Someone’s going to get killed and then the government’s going to come down,” he said. “You just saw in China, governments like to control their money supply.”

Which, of course, is the whole point behind cryptocurrency: a method of exchange that is independent of and in apposition to conventionally accepted fiat and monetary mechanisms, one which the government frowns upon if not outright rejects, even if it is ultimately unable to block it. As an example of that, observe the reaction in bitcoin to this weekend's news that China is (allegedly) closing bitcoin exchanges: BTC dropped from $4,700 to $4,200 and... that was about it. Of course, to the CEO of JPMorgan, which incidentally is a founding member of the Enterprise Ethereum Alliance and which nearly two years ago started a trial project using blockchain to cut trading costs, such positioning only has negative connotations:

“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 U.S. dollars. So there may be a market for that, but it’d be a limited market.”

He is right: the market is limited right now because only a handful of modern countries have experienced catastrophic hyperinflation, but the number is rising. And what bitcoin - like gold - provides is protection if the monetary insanity unleashed by "developed market" central banks eventually results in the same outcome as Venezuela, North Korea and so on. It's insurance, and judging by the soaring price, more and more are eager to buy this insurance.

Imagine what will happen when the market is no longer limited?

Ultimately Dimon does grasp the implications, because as he told CNBC, "I'm not saying go short. Bitcoin can hit $100,000 before it goes down. This is not advice of what to do."

No, his advise is simpler: stop trading bitcoin and instead trade commission-generating equities ideally with JPMorgan: earlier in the day Dimon warned that JPM's trading revenue in Q3 will tumble 20%.

And then there was the amusing anecdote involving his own daughter: "My daughter bought bitcoin, it went up and now she thinks she's a genius."

Well, she is more of a genius than equity investors: bitcoin has soared without the Fed and other central banks having to inject $15 trillion in liquidity to keep it from crashing...

 

Amusingly, a reader sent in the following terse comment on Dimon and Bitcoin:

Two numbers that stand out:

  • Over $13b in fines paid by JPM because of fraudulent mortgage practices
  • Over $1b in separate fines paid because of its role in the Madoff scheme.


All under Jamie's watch. But it's Bitcoin he's worried is the fraud?

 

Actually, I'm quite grateful to him. Not only does he reconfirm the existential threat the underlying tech poses to his business, but he's becoming the perfect contrarian indicator.

 

Once JPM announces it's own crypto research and trading desk, complete with structured products and derivatives built around Bitcoin, we'll know it's time to sell!

And speaking of contrarian indicators, Bitcoin has already recovered more than half the losses it sustained after today's Dimon slam.

Comments

wisehiney Tue, 09/12/2017 - 18:08 Permalink

These mofos are the best contrary indicators on earth.Bitcoin will fly now.And gundlach says rates are too low again.Sub 2% ten year here we come.

YUNOSELL nope-1004 Tue, 09/12/2017 - 18:16 Permalink

I called my good friend Jamie up and said "Jamie I just sold my bitcoin at a high -- can you now announce it is a scam and you won't let your traders trade it?", and after it went down, I called him back saying "OK Jamie, I bought it back when it was low -- now can you make that comment about your daughter buying it to push it up again?"Thanks Jamie!

In reply to by nope-1004

tmosley tion Tue, 09/12/2017 - 19:53 Permalink

TBH it's pretty surface level. The fall of the Hyksos Dynasty matches up almost exactly with Exodus, datewise. Little bit too much of a coincidence.https://en.wikipedia.org/wiki/HyksosSuspect the Torah was made up during the Babylonian captivity using a number of oral (and a few written) traditions that were around at the time, re-written to put the captive citizens of Judah at the center of everything, and painting them as a people who had always been united as a single people, under the patron god of Judah, who, of course, is ALL POWERFUL, and clearly superior to the gods of the people who beat their asses and raised their capital to the ground.

In reply to by tion

rccalhoun tion Tue, 09/12/2017 - 22:22 Permalink

Jamie's daughter didnt buy the beanie babies for $1500. jamie (himself) bought them--a lot of them.The only thing jamie des right is have his nose up the right asses.....and that is the only thing anyone need do right on wall street or inwash dc.  so he a king, because his nose is 100% constantly brown. 

In reply to by tion

greenskeeper carl Croesus Tue, 09/12/2017 - 18:42 Permalink

Funny because although he is probably right about bitcoin, EVERYTHING his banks trades in isn't "real" either. The idea that bitcoins are any more fraudulent than dollars borrowed into existence, at interest, or printed out of nothin, or just conjured out of thin air on a computer, is patently absurd. Also funny because his firm, his wealth, the entire ediface upon which he exists, is nothing but a mountain of fraud, deception and bullshit

In reply to by Croesus

caconhma Pladizow Tue, 09/12/2017 - 20:34 Permalink

Fed and other Central banks WILL NOT tolerate any currency outside of their complete control.So, grow up and think: why did FED & US Treasury tolerate bitcoin for so long? Who is really behind it? Remember that even gambling is highly regulated in America either by the government or the CIA/FBI controlled mafia.

In reply to by Pladizow

mmanvil74 SILVERGEDDON Tue, 09/12/2017 - 18:43 Permalink

“If you were in Venezuela or Ecuador or North Korea or a bunch of parts like that"...It turns out, most countries in the world do not trust the long term value of their national currency, nor should they. The market size of "parts like that" dwarfs developed world currency holders.Developed nations' currencies are also in decline albeit more slowly, just look at how they are falling in value against stocks, real estate, food, etc.With the mainstream banks getting increasingly nervous about the new coin on the block (pun intended), smart people are asking the question, who do you trust with your money? JP Morgan or Bitcoin?(Ecuador uses USD by the way, Mr. Dimon)

In reply to by SILVERGEDDON

tmosley Creepy_Azz_Crackaah (not verified) Tue, 09/12/2017 - 18:23 Permalink

I'm sure the kikes made fun of tally sticks too. I can just see them mocking it. "Sticks as money, lol!!!!"Well, it outlasted them by several hundred years. Their descendants finally gathered them all up with money stolen from Germans via their central bank and used them to open the BoE.Wonder if people will remember the lesson this time?

In reply to by Creepy_Azz_Crackaah (not verified)

Creepy_Azz_Crackaah (not verified) tmosley Tue, 09/12/2017 - 18:28 Permalink

LOL! So many desperate ZHers needing their bitcoins to go to the moon for retirement. I hope that you all do well and get out at the right time. I'm paying for WAY too many free shiters with my taxes as it is! Don't go broke on your "smarts."

In reply to by tmosley

TruthHammer tmosley Wed, 09/13/2017 - 09:42 Permalink

its cute that you reply thinking I even look to see what you say in reply1.) Doxxing requires publishing information, even if i know your age, address, phone number, etc, it wouldnt be doxxing unless I printed, or threatened to come and pound the shit out of you, etc.2.) You dont have a real job, so obviously you can get away with being part of the racist herd that ruined zerohedge's comment section, without fear of consequences.  Had you actually succeeded in Chemistry and managed to get a position, instead of minor co-authorships, then I am sure you would behave differently.3.) Being in your mid 20s when first stumbling across ZH and its early days, its not surprising the high Finance and Economic conversations vastly exceeded your understanding.  In a way, someone as pathetic as you needed zerohedge comments to descend to 4chan levels for you to participate

In reply to by tmosley