On Tuesday, Jamie Dimon had some rather incendiary things to say about Bitcoin.
Specifically, he said the following:
- DIMON: WOULD FIRE ANY TRADER TRADING BITCOIN FOR BEING STUPID
- DIMON: BITCOIN `WON’T END WELL’
- DIMON: BITCOIN IS `WORSE THAN TULIP BULBS’
- DIMON: BITCOIN WILL EVENTUALLY BLOW UP: `IT’S A FRAUD‘
You can read our initial post on that here which includes some new commentary from Bloomberg’s Cameron Crise that’s pretty interesting to the extent it’s an accurate portrayal of the costs associated with the proliferation of crypto.
Regular readers (and anyone who subjects themselves to my Twitter feed) know that I think Bitcoin is probably going to zero. And my rationale for asserting that is simple.
Governments simply won’t put up with this forever. Once it gets annoying enough (read: once it becomes a real challenge to monetary authorities), they’ll simply find an excuse to heavily regulate it or, more likely, do away with it altogether. It’s just that simple.
And don’t tell me they can’t do it. They can. Just look at what’s happening in China.
And don’t tell me about how, in the end, the fact that it’s a great idea will save it. No it won’t. History is replete with examples of government intentionally killing good ideas – especially ones that threaten the existing order.
It’s also critical to understand that there’s a veritable laundry list of excuses governments will be able to trot out to justify heavy-handed intervention. They’ll cite flash crashes, they’ll cite the possibility it can be used for illegal transactions, they’ll cite a lack of investor protections, and on, and on, and on.
Throw in the fact that Bitcoin is a giant bubble, and you’ve got what is perhaps the most compelling case imaginable for thinking that eventually, this is going to zero. And when I say “zero” I mean that kind of “zero” where something ceases to exist altogether.
Now sure, it might go to $500,000 first (and let’s hope it does so we don’t have to watch John McAfee pull a Steve Bannon on live television), but eventually this thing will be relegated to the dustbin of bubble history.
So with that as the context, we present more from Dimon who, in a conversation Tuesday afternoon with Andrew Ross Sorkin, talked more about Bitcoin and said precisely what we’ve been saying since the first day this site was live. Namely that the government is going to shut this whole thing down as soon as something goes wrong – and maybe even before that.