LONDON (Reuters) - slid by more than 10 percent on Wednesday, as investors sold the cryptocurrency after a warning by JPMorgan (N:) Chief Executive Jamie Dimon that it "is a fraud" and will eventually "blow up".
Dimon, who has previously discussed his disdain for the digital money, told attendees during a Barclays' financial conference in NY on Tuesday (12 September) that he would not hesitate to fire JPMorgan employees found to be trading in the cryptocurrency.
In an appearance at another event earlier in the day, Dimon compared bitcoin to "tulip mania". It won't end well. "Someone is going to get killed", Dimon said at a banking industry conference organised by Barclays.
Bitcoin is a virtual currency that emerged in the aftermath of the financial crisis. "It will blow up".
He said he'd fire, on grounds of stupidity, any trader who traded it. "It's against our rules, and they're stupid". This is not advice of what to do.
However, the banker revealed that his daughter had bought bitcoin: "It went up and she thinks she's a genius now". A short time ago, Bitcoin Cash was at a one-month low around $US500.
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.
Even Dimon's own bank, JPMorgan, has reportedly begun a trial project using blockchain as it tries to cut trading costs.
Dimon, however, isn't the only figure warning about the bitcoin bubble; United Kingdom financial watchdog the Financial Conduct Authority issued a striking warning today to those investing in cryptocurrencies.
That would be "a limited market", he said.
Mr. Dimon has indicated that the best argument in favor of bitcoin, is that it can be used in geographic regions in difficulty, or by thugs.
According to TheStreet, BitKan informed that as the trading of initial coin offerings or ICOs is also suspended, the ban on bitcoin was the next logical step to take.