He went on to say that Bitcoin "won't end well... someone is going to get killed and then the government is going to come down on it", he said at a bank investor conference in NY as quoted by Reuters.
JP Morgan (NYSE:JPM) boss Jamie Dimon has criticized Bitcoin (CURRENCY:BTC) as a "fraud", and only fit for use by drug dealers, murderers and "people living in places such as North Korea". It won't end well.
Dimon is not the only one who has something to say about the digital currency, as a matter of fact, Wall Street stars such as Fundstrat's Tom Lee has recently announced that he is predicting that Bitcoin can surge up to $6,000 next year. "It will blow up".
Dimon said he would fire any employee for trading bitcoin. Why? "For two reasons: it is against the rules and they are stupid, and the two are risky", he warned. 26% of responders said they consider bitcoin to be the most crowded, 22% mentioned the long Nasdaq trade, and 21% cited the short dollar trade as the most crowded. This is not advice of what to do. It originates from a period of time during the Dutch golden age in the 1600s when tulip bulbs prices briefly swelled incredibly high before crashing dramatically.
He said bitcoin's value could rise to $20,000, or even $100,000, but maintained it will still crash.
As reported by Bank of America Merrill Lynch, Bitcoin is today the most crowded trade in the world, in fact. The following month at the WEF summit in Davos, Dimon doubled down on his opinion, stating "there's nothing behind a bitcoin and I think if it was big, the governments would stop it".
JPMorgan is now investing heavily in the cutting-edge technology and is now probing the use of Ethereum, a separate type of digital cash and a major rival to bitcoin.
"Most importantly, given that the CEO does not think that shorting this trade would yield a more favorable outcome shows that the cryptocurrency has a lot more room to run".
That would be "a limited market", he said.
Bitcoin slipped as much as 7.55% following Dimon's remarks, and according to Coindesk was trading at $3,834.98 by 13:33 BST.
The latest crackdown on cryptocurrency activity in China comes a week after the People's Bank of China (PBoC) sent shockwaves through the cryptocurrency market, imposing a ban on individuals and businesses from raising funds through initial coin offerings (ICOs).