As Bitcoin Hits All-Time High, Dimon Says He’ll Stay Silent On The Topic
“I wouldn't put this high on the category of important things in the world. But I'm not going to talk about bitcoin anymore,” Dimon said on Thursday during the Q&A session following the bank's Q3 earnings call.
Dimon’s statement comes after he called bitcoin a “fraud” last month, triggering a major reaction on the markets.
“The currency isn't going to work. You can't have a business where people can invent a currency out of thin air and think that people who are buying it are really smart,” he said.
On Thursday, bitcoin hit a new all-time high, breaching the $5,300 level. The digital currency was last seen trading at $5,365.00, up 11.19 % on the day.
Year-to-date, bitcoin is showing staggering results, up more than 420%, despite some significant blowbacks coming from China, which introduced a ban on initial coin offerings (ICOs) and shut down some cryptocurrency exchanges last month.
Still, many experts believe the digital currency won’t survive, mainly because of the threat regulations pose to it.
On Wednesday, Harvard economist and former chief economist at the International Monetary Fund (IMF) Kenneth Rogoff stated that bitcoin is likely to collapse due to regulatory pressures, while its blockchain technology remains.
“My best guess is that in the long run, the technology will thrive, but that the price of bitcoin will collapse,” Rogoff said in an article for The Guardian and Project Syndicate.
Yet, JPMorgan is not giving up on cryptocurrencies just yet, as long as they are regulated.
“We are open-minded for digital currencies that are properly controlled and regulated,” JPMorgan CFO Marianne Lake said on Thursday. “We’re not going to not be part of that conversation. We’ll have to see, it’s quite nascent.”
Lake also talked about the benefits of blockchain technology, which is used by cryptocurrencies like bitcoin and allows for immediate, secure and anonymous transfers without any oversight by central authority.