Bitcoin is a ‘fraud’ that will eventually blow up: Jamie Dimon

Leveling a harsh criticism about bitcoin, JP Morgan Chase CEO Jamie Dimon said the controversial cryptocurrency is nothing more than a fraud. At the Delivering Alpha conference on Tuesday, Dimon compared the quick ascent of bitcoin with the 17th century mania over tulip bulbs, which is viewed as a classic, textbook bubble. He predicted that the digital currency might end just as badly for investors as the mania over tulip bulbs had ended.

However, he stressed that he was not suggesting investors to immediately sell off their bitcoins.

Speaking on the topic, he said, “It's just not a real thing, eventually it will be closed. I'm not saying 'go short bitcoin and sell $100,000 of bitcoin before it goes down. This is not advice of what to do. My daughter bought bitcoin, it went up and now she thinks she's a genius.”

It is interesting to note here that some well-known figures on Wall Street, including Fundstrat’s Tom Lee and value investor Bill Miller have spoken in favor of bitcoin.

In wake of Dimon’s comments, bitcoin suffered a decline of 6 per cent to $3,902 in New York.