Bitcoin is a fraud that will blow up, says JP Morgan boss

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Mr. Dimon's warning triggered a further 11-per-cent collapse in the price of bitcoin, which had already lost around 15 per cent of its value in 10 days.

"It won't end well", Dimon said at the conference, per CNN Money. Dimon compared Bitcoin to the infamous "tulipmania" in the 17th century, when bulbs of tulips attracted speculators and reached incredibly high levels before crashing in 1637.

Dimon, 61, said the next chief executive of the bank will come from within its own executive ranks. He also said that he would immediately fire any employee at the investment bank that he found to be trading in Bitcoin. "Two, it's stupid", he said. "And both are risky". According to data from cryptocurrency tracker Coinmarktcap, Bitcoin (BTC) has lost more than 7% over the past 24 hours.

Bitcoin entrepreneurs talking it up is one thing, but Dimon's words have an impact. It was down as much as 2.7 per cent before recovering. Last week, it slumped after reports that China plans to ban trading of virtual currencies on domestic exchanges, dealing another blow to the $150 billion cryptocurrency market. 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. That didn't end well. His explanation of the merits of Bitcoin started off negative, when he said: "The currency isn't going to work".

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"The currency isn't going to work", he said, at a banking conference in NY. "You just saw China, governments like to control their money supply". However, many countries hold different attitudes toward Bitcoin.

The Bitcoin, Ethereum, and Blockchain Super Conference is being organized by Richard Jacobs, who runs the Future Tech Podcast and used to run the official Bitcoin.com podcast. "I'm not saying 'go short bitcoin and sell $100,000 of bitcoin before it goes down". People need to be careful, he said.

Dimon also iterated that the only people who would invest on Bitcoin are murderers, drug dealers, and people living in parts of North Korea, Ecuador, and Venezuela.

"There may be a market for that but it's a limited market", he added.

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