If JPMorgan CEO Jamie Dimon was trying to set off the bitcoin community with his criticism of cryptocurrency, he succeeded.
On Tuesday, Dimon called bitcoin a “fraud,” described it as “not a real thing” and said, “someone is going to get killed.”
Crypto enthusiasts took little time in firing back — on Twitter and on TV. We emailed Fred Wilson, a partner at Union Square Ventures and one of the first investors in bitcoin-related start-ups, to get his thoughts on Dimon’s comments.
“You have to have an open mind to be able to see the future,” Wilson said.
Venture capitalists and hedge fund managers that have joined in the crypto parade said that Dimon’s stance is a reflection of Wall Street’s defensive posture and attempts to downplay one of the biggest existential threats to the banking industry. Bitcoin is a decentralized digital currency that relies on blockchain technology and isn’t controlled by banks or governments.
There’s no doubt that it’s a volatile trade. Bitcoin is up more than five-fold in the past year, but has dropped by 35 percent this month. So when Dimon says, it’s “worse than tulib bulbs,” which experienced a massive bubble and burst in the 17th century, Dimon is comparing bitcoin to other overhyped assets.