JPMorgan's Jamie Dimon: Bitcoin 'is a fraud'

Currencies Reuters

Jamie Dimon, Chairman and CEO of JPMorgan Chase & Co. speaks during the Milken Institute Global Conference in Beverly Hills, California, U.S., May 1, 2017. (REUTERS/Mike Blake)

Bitcoin "is a fraud" and will blow up, Jamie Dimon, chief executive of JPMorgan Chase & Co <JPM.N>, said on Tuesday.

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Speaking at an investor conference in New York, Dimon said, "The currency isn't going to work. You can't have a business where people can invent a currency out of thin air and think that people who are buying it are really smart."

Dimon said that if any JPMorgan traders were trading the crypto-currency, "I would fire them in a second, for two reasons: It is against our rules and they are stupid, and both are dangerous."

Dimon’s comments come as the bitcoin, a virtual currency not backed by any government, has more than quadrupled in value since December to more than $4,100.

Bitcoin is a digital currency that enables individuals to transfer value to each other and pay for goods and services bypassing banks and the mainstream financial system.

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Dimon also said JPMorgan's third-quarter trading revenue will be down about 20 percent from a year earlier, in line with analysts' expectations.

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(Reporting by David Henry and Anna Irrera in New York; Editing by Steve Orlofsky)

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