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.
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…”
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!)