JP Morgan CEO Jamie Dimon fueled the plummeting valuation of Bitcoin to slide further by calling this cryptocurrency a “fraud” and it would “blow up” earlier this week at an industry conference hosted by Barclays. Previously China’s ban on the cryptocurrency had caused 10 percent decrease in its value and this comment pushed the value to to $3,772, the lowest it has been in a month. The CEO is quite confident that the end of Bitcoin is almost near. The bank has also released a searing report on the trending investment option, questioning its authenticity and drawing parallel to “pyramid schemes”. The report, authored by analyst Marko Kolanovic, is a dubious take on the complete $180 billion cryptocurrency market. However, these news on the departure of Bitcoin from the virtual world might be hyperbolic.
Currently, Bitcoin stands at $3,916 as of Thursday morning and its all-time high is less than $5,000. On a comparative note, six months back this virtual currency was at another all-time high, $1,223, and half-a-year before that it was hovering close to $600. Note that earlier also Dimon had set the expiration date of Bitcoin — in 2015 he stated that government under no circumstances would allow Bitcoin to challenge local currency. During that time, the value of Bitcoin was at $334. This means had you not paid heed to his remarks and bought 10 Bitcoins in November of 2015, shelling out much less than that of the current price — your Bitcoin valuation could have become worth $30K.
What happens in the past is crystal clear to us and if we could see the future, everyone would become millionaires. Although it is quite evident that China’s ban on ICOs could cause some turmoil, the technology behind Bitcoin, i.e., blockchain is here to stay for very long time. This, even Dimon cannot deny! While we agree that cryptocurrency has a stable platform and currently Bitcoin is the one which has got topmost position, the fundamentals of crypto coins will remain intact and someone else may or may not take that position.
As per reports, Dimon has also threatened to show the exit door to the employees who are into crypto trading. He continued by drawing similarities with “tulip mania”, referring to a time in Dutch history in which the market demand for the eye-catching new flower increased the prices for its bulbs to gigantic proportions before finally crashing. It is impossible to see the future and that’s where financial advisors come into the picture – they can study the market via domain knowledge and experience to show the optimal path. However, going by the historical trend, Dimon’s statement can considered as a sign to go ahead with crypto investments.