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September 22, 2017updated 26 Jul 2022 11:34am

Bitcoin gets bad rap from JPMorgan CEO

What is your reaction to Mr Dimon's opinion of cryptocurrencies? Will they slip away into irrelevance? Or are they the future?

By Tom Ball

The chief executive of JPMorgan, Jamie Dimon, has knocked bitcoin by saying it will likely come to an end when governments shut down cryptocurrencies.

Dimon believes that governments will not allow cryptocurrencies to grow beyond a certain point, ultimately making them illegal, pushing them underground.

Cryptocurrencies have enjoyed rapidly growing popularity, with Bitcoin leading the way by breaking a number of big records this year, most recently passing the $5,000 mark for the first time.

“Right now these crypto things are kind of a novelty. People think they’re kind of neat. But the bigger they get, the more governments are going to close them down,” Jamie Dimon told CNBC.

Recently a major Bitcoin exchange in China ceased operating due to pressure from the government, an action that Dimon expects to become more widespread over time.

Mr Dimon said: “With central banks, (the money) says legal tender: you have to take this as payment. It’s very cheap to do, it’s very easy to move back and forth. JPMorgan moves $6 trillion around the world every day very efficiently, very quietly, very effectively and very cost efficient… Creating money out of thin air without government backing is very different from money with government backing.”

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The price of Bitcoin as grown with a near vertical trajectory from the beginning of 2017, followed eagerly across the globe as it bassed $2,000, $3,000, $4,000 and now the $5,000 mark. One milestone that caught people’s imagination came when the price of Bitcoin surpassed the price of gold on the basis of an ounce to a single unit of the currency.

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Despite these major successes, the currency has left some lacking confidence when the blockchain behind Bitcoin caused the currency to split, bringing Bitcoin Cash, another currency into existence. This was caused by Bitcoin miners, and it meant owners of the currency immediately doubled their money.

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