JPMorgan's Dimon calls bitcoin a 'fraud'


Dimon gave the remarks during an appearance at an event hosted by Barclays, according to reports from Bloomberg and CNBC.

On the USA -based Bitfinex exchange, bitcoin fell to $4,108.1, down $93.7 or 2.23%, well below its recent peak of $4,969. It won't end well. "Someone's going to get killed and then the government's going to come down..."

In bitcoin's case, Dimon said he's skeptical authorities will allow a currency to exist without state oversight, especially if something goes wrong. They were being "stupid". He declined to short bitcoin because there's no current way to tell how high the price will go before his predicted collapse. "You just saw China, governments like to control their money supply".

"If you're in Venezuela or Ecuador, or North Korea, you're better off probably using Bitcoin than using their currency", he said. "Earlier that day, Dimon said that Bitcoin could perhaps reach "$20,000". "So there may be a market for that, but it'd be a limited market".

Dimon did acknowledge that people in locations with no other options could find bitcoin very useful and that his own daughter has purchased bitcoin.

Gundlach said he doesn't have a view on bitcoin but that he's concerned it may be more vulnerable to manipulation than enthusiasts admit.

"Like it or not, people want exposure to bitcoin", Edward Tilly, chairman and CEO of exchange group CBOE Holdings Inc.

"Honestly, I am just shocked that anyone can't see it for what it is". At the same time, Starwood Capital CEO Barry Sternlicht revealed that one of his relatives was also trying to start a bitcoin-related hedge fund. Bitcoin can go $100,000 a bitcoin before it goes down, so this is not advice on what to do, " the chief executive said Tuesday.