JP Morgan CEO Jamie Dimon sparked a market crash when he called Bitcoin a “fraud” that would “explode” earlier this week at a conference. The price of Bitcoin – already down more than 10% on word China could ban the cryptocurrency – fell further to $ 3,772, the lowest in a month, after Dimon’s remarks. If it is to be believed, the end of Bitcoin is near.
Then again, reports of Bitcoin’s demise may have been overstated. Bitcoin sits at $ 3,894 on Wednesday afternoon and its all-time high is below $ 5,000. As a prospect, six months ago Bitcoin was at another all-time high, $ 1,223, and six months before, its high was around $ 600.
This is also not the first time that Dimon has declared Bitcoin dead; in 2015, he said there was no way for a government to allow Bitcoin to challenge the local currency. At the time of his conviction Bitcoin was valued at $ 334.
If you had then ignored Dimon and bought 10 Bitcoin in November 2015 – spending less than you would for a Bitcoin now – your investment would be worth over $ 30,000. Hindsight is still 20/20, however, and we would all be millionaires if we could see the future.
Although it is possible that the china news, including an ICO ban, could continue to shake confidence, even Dimon admits that the technology behind Bitcoin, blockchain, is not going anywhere. This means that the cryptocurrency has a platform – and right now Bitcoin is the king of that platform.
Dimon would have been threatened Pull all corporate traders who have traded Bitcoin, and he continues to liken cryptocurrency to ‘tulip mania’, referring to a period in Dutch history when market demand for the exotic new flower has inflates the prices of its bulbs to epic proportions before finally plummeting.
No one can predict the future with 100% accuracy – and you should consult a financial advisor before making any investment decisions – but if the past is any indicator, Dimon’s warning should be interpreted as the bell. opening for buyers.
If the CEO of JP Morgan can increase the value of Bitcoin by 10 times every 24 months by predicting its imminent demise, the price of tulips is still on the rise.
Perhaps the best way to look at his remarks comes from JP Morgan Blockchain Manager Amber Baldet in response to Dimon’s comments.
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– Amber (@AmberBaldet) September 12, 2017