Response to Jamie Dimon on Bitcoin
by Jacob McCartney on 2017-09-13
Jamie Dimon, the CEO of JPMorgan Chase, recently called Bitcoin “a fraud.” He said it was a fad that cannot possibly last, even joking that his daughter had bought into it. “Currencies have legal support,” he said. “It will blow up.” He predicted that “eventually it will be closed,” because “currencies have legal support.”
I believe Jamie Dimon is wrong on Bitcoin. In October of last year, I published an article about why I believe Bitcoin is an entirely viable currency. Back then, the price of a Bitcoin was a little over $600. Today, it sits at $3,800, down from its high of $4,919 before falling after Dimon’s comments. My prediction of the value reaching $1,000 by the end of the year came up less than $40 short.
Bitcoin has continued to rise, despite criticism, and I see no reason it will not continue to do so. Some of the biggest companies that accept Bitcoin include Overstock.com, Microsoft, DISH, Intuit, and PayPal. The entire list is much longer. The value of Bitcoin is already higher than it was predicted to be.
According to Dimon, because Bitcoin is used mainly for illicit purposes (due to its anonymous nature), governments will eventually shut it down. The problem with this is that because of the decentralized nature of the blockchain, that would require every government to try to shut down every single node across the world. Because there are currently around 9,000 nodes running in countries on every continent (this number is increasing), doing so would be next to impossible.
People like Dimon, along with governments, are going to keep trying to discredit Bitcoin because they fear it. Governments like to know what people are doing with their money, and financial institutions like to act as middleman. Bitcoin makes this impossible for both. They will do whatever they can to hold Bitcoin back until they realize they cannot, and they will be forced to embrace it.
Imbert, Fred. “JPMorgan CEO Jamie Dimon Says Bitcoin Is a Fraud That Will Eventually Blow Up.” CNBC, CNBC, 12 Sept. 2017, http://www.cnbc.com/2017/09/12/jpmorgan-ceo-jamie-dimon-raises-flag-on-trading-revenue-sees-20-percent-fall-for-the-third-quarter.html.
Williams, Sean. “5 Brand-Name Businesses That Currently Accept Bitcoin.” The Motley Fool, The Motley Fool, 6 July 2017, http://www.fool.com/investing/2017/07/06/5-brand-name-businesses-that-currently-accept-bitc.aspx.