Jamie Dimon is finding it difficult to ignore Bitcoin. A day after stating that he would not talk about Bitcoin, he breaks his silence to emphasize that stupid bitcoin investors will pay the price.
The Greater Fool Theory
The central theme of Jamie Dimon’s renewed attack on Bitcoin is that it is a bubble,
where the underlying asset has no value. So although certain people
will profit because they manage to sell their Bitcoin to late investors
(the 'greater' fools), the end result will definitely be a crash. The
oft-repeated comparison with the Tulip Mania was made to support his
point.
I don't personally understand the value of something which has no
actual value.... A lot of the buyers out there are jazzing up everyday,
so that maybe you will buy it too. And take them out.
Eventually...
After his statements that Bitcoin is a fraud and that governments
would crush it, Jamie Dimon has been repeatedly confronted with
Bitcoin's zooming price. He nonetheless stuck to his stance that while
the price might go up, it would eventually collapse. Jamie is very
comfortable with dollars, but not with a decentralized, non-fiat
currency like Bitcoin.
"It could trade for $100,000 before it trades for zero. Tulip bulbs traded for $75,000 or something like that..."
Ominous Warning
Jamie did not stop by just attacking Bitcoin, but went on to attack
Bitcoin investors as well. He had previously stated that he would fire
any JP Morgan employee who traded in Bitcoin, not just because it was
against the rules of JP Morgan, but because they would be stupid to
trade the digital currency. He again reiterated that those who have
invested in Bitcoin would regret their decision.
"If you are stupid enough to buy it, you will pay the price for it one day."
He signed off by stating that this is the last time he is going to
ever answer questions about Bitcoin and he really doesn't care. (Until
tomorrow perhaps!)
