Homepage / Technology / Bitcoin fans fire back at Jamie Dimon after 'fraud' comment
Amazon says this Prime Day was its biggest shopping event ever Kudlow says President Trump is 'so dissatisfied' with China trade talks that he is keeping the pressure on As stocks regain their footing, an ominous warning looms Goldman Sachs downgrades Clorox to sell, says valuation is 'unsustainably high' How Satya Nadella has spurred a tripling of Microsoft's stock price in just over four years Kudlow says economic growth could top 4% for 'a quarter or two,' more tax cuts could be coming The one chart that explains Netflix’s stunning comeback US housing starts plunge 12% in June to a nine-month low Aerospace titans Boeing and Airbus top $110 billion in orders at Farnborough Target uses Prime Day to its advantage, logging its 'biggest online shopping day' so far this year Billionaire Marc Lasry sees bitcoin reaching up to $40,000 as it becomes more mainstream and easier to trade These are the 10 US airports where you're most likely to be hacked Amazon shares slightly higher as investors await Prime Day results Wreck of Russian warship found, believed to hold gold worth $130 billion A bullish ‘phenomenon’ in bond market is weeks away from fading, top credit strategist says Stocks making the biggest moves premarket: MS, GOOGL, TXN, UAL, NFLX & more Twitter shares up 50% since late April means most upside priced in, analyst says in downgrade EU fines Google $5 billion over Android antitrust abuse Mortgage applications fall 2.5% as buyers struggle to find affordable homes America may not have the tools to counter the next financial crisis, warn Bernanke, Geithner and Paulson Investors are getting spooked as the risk of a no-deal Brexit rises EU expected to fine Google $5 billion over Android antitrust abuse Ex-FBI chief James Comey urges Americans to vote for Democrats in midterm elections Elon Musk apologizes to British cave diver following baseless 'pedo guy' claim Disney, Comcast and Fox: All you need to know about one of the biggest media battles ever Xiaomi shares notch new high after Hong Kong, mainland China stock exchanges reach agreement The trade war is complicating China's efforts to fix its economy European markets set for a strong open amid earnings; Google in focus Hedge fund billionaire Einhorn places sixth in major poker tournament The biggest spender of political ads on Facebook? President Trump Asian stocks poised to gain after Fed's Powell gives upbeat comments; dollar firmer Stocks are setting up to break to new highs Not all FAANG stocks are created equal EU ruling may be too little, too late to stop Google's mobile dominance Cramer explains how Netflix's stock managed to taper its drop after disappointing on earnings Airbnb condemns New York City's 'bellhop politics,' threatens legal retaliation Amazon sellers say they were unfairly suspended right before Prime Day, and now have two bad choices Investor explains why 'duller' tech stocks can have better returns than 'high-flying' tech names Elon Musk is 'thin-skinned and short-tempered,' says tech VC Texas Instruments CEO Brian Crutcher resigns for violating code of conduct Google Cloud Platform fixes issues that took down Spotify, Snapchat and other popular sites Uber exec: We want to become the 'one stop' transportation app 'What a dumb hearing,' says Democrat as Congress grills tech companies on conservative bias Amazon shares rebound, report says Prime Day sales jumped 89 percent in first 12 hours of the event How to put your medical history on your iPhone in less than 5 minutes Investment chief: Watch these two big events in 2018 Even with Netflix slowing, the market rally is likely not over Cramer: Netflix subscriber weakness debunks the 'sky's the limit' theory on the stock Netflix is looking at watch time as a new area of growth, but the competition is stiff Why Nobel laureate Richard Thaler follows Warren Buffett's advice to avoid bitcoin Rolls-Royce is developing tiny 'cockroach' robots to crawl in and fix airplane engines After Netflix plunge, Wall Street analysts forecast just tame returns ahead for the once high-flying FANG group Roku shares rise after analyst raises streaming video company's price target due to customer growth China is investing 9 times more into Europe than into North America, report reveals Amazon says US Prime Day sales 'so far bigger than ever' as glitch is resolved Netflix is on pace for its worst day in two years US lumber producers see huge opportunity, rush to expand San Francisco to consider tax on companies to help homeless Homebuilder sentiment, still high, stalls as tariffs, labor and land drive up costs Powell backs more rate hikes as economy growing 'considerably stronger' Netflix history is filled with big stock declines – like today – followed by bigger rebounds Intel shares get downgraded by Evercore ISI due to rising competition from Nvidia, AMD Petco aims to reinvent the pet store with something you can't buy online Genetic testing is coming of age, but for consumers it's buyer beware Tech 'FAANG' was the most-crowded trade in the world heading into the Netflix implosion, survey shows Netflix weak subscriber growth may indicate a 'maturity wall' that could whack the stock even more: Analyst This chart may be predicting the bull market's demise Wall Street says Netflix's stock plunge is a ‘compelling’ buying opportunity because the streaming giant ‘never misses twice’ Tesla sinks after Musk tweets, again Boeing announces new division devoted to flying taxis Stocks making the biggest move premarket: NFLX, UNH, GS, AMZN, WMT & more Deutsche Bank downgrades Netflix, but says big subscriber miss is not 'thesis changing' IBM is experimenting with a cryptocurrency that’s pegged to the US dollar North Korea and Zimbabwe: A friendship explained Virgin Galactic spinoff Orbit to launch rockets from the UK with space deal Artificial intelligence will create more jobs than it destroys? That’s what PwC says ‘Treasonous’ Trump and ‘Putin’s poodle:' Scathing headlines follow the Trump-Putin summit China’s fintech companies offer ‘enormous’ opportunity, investment manager says Trump's performance at summit with Putin was 'unprecedented,' experts say Walmart and Microsoft link up on cloud technology as they both battle Amazon European stocks seen mixed amid earnings; Fed’s Powell to address Congress How I knew I should quit my day job and run my start-up full-time: Viral website founder China's stocks have been trounced, but the trade war may ultimately be good news for those shares Billionaire tech investor Peter Thiel bets on crypto start-up Block.one Asian shares subdued open after mixed close on Wall Street; energy stocks under pressure Amazon cloud hits snags after Amazon Prime Day downtime Netflix isn't doomed by one quarter unless people start questioning the long-term investor thesis Tech stocks set to sink on Tuesday after rough evening for ‘FANG’ Netflix plummets after missing big on subscriber growth This wristband lets humans control machines with their minds The U.S. has a rocky history convincing Russia to extradite computer criminals Amazon suffers glitches at the start of Prime Day Jeff Bezos is now the richest man in modern history 'The United States has been foolish': Read Trump and Putin's full exchange Goldman Sachs recommends these 5 highly profitable companies — including Nvidia — to combat rising inflation Goldman Sachs releases 'tactical' stock picks for this earnings season Three red flags for Netflix ahead of its earnings report The bond market may be raising recession fears, but don't expect one anytime soon Cramer: Banks are 'making fortunes' but are still as hated as they were during the financial crisis Putin told Trump at summit: Russia never meddled in US election

Technology

Bitcoin fans fire back at Jamie Dimon after 'fraud' comment

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.

Balaji Srinivasan, the CEO of bitcoin startup 21.co, said Dimon is ignoring the functionality of bitcoin. While it doesn’t have day-to-day price stability, lacks regulation and isn’t accepted at the corner store, the currency works across borders, can be programmed to track transactions in a more secure way and doesn’t require a bank account.

Srinivasan refers to bitcoin’s “10X features,” or properties that make it 10 times better than what’s currently in place.

“With one 10X feature, you have a contender,” he said. “With half a dozen, you have something special.”

Dimon’s comments at the Delivering Alpha conference followed a crypto clampdown in China, which reportedly plans to ban fundraising through initial coin offerings and trading of cryptocurrency on domestic exchanges. The news caused BTC China, one of the biggest online exchanges, to shut down on Thursday and sparked a slump in the price of bitcoin.

Meanwhile, Mohamed El-Erian, Allianz’s chief economic advisor, echoed Dimon’s sentiment this week and said bitcoin’s price should be cut in half.

Dimon has long been skeptical of bitcoin and has repeatedly criticized the value of the cryptocurrency. On Tuesday, he said bitcoin will be in a “limited market” because governments typically like to take control of their currencies.

Dimon said the underlying blockchain technology has more value, and JPMorgan has been exploring various uses of it.

The more fundamental difference between Dimon and the tech community may be in the way they define the widespread adoption of the currency. Michael Moro, CEO of digital currency trading firm Genesis Trading, said bitcoin could rise in value even if it fails to gain mainstream traction in more advanced countries like the U.S.

That’s because in much of the world, political and economic instability is so great that citizens are at risk of seeing their savings diminished or wiped out.

“It’s entirely possible for bitcoin’s price to be high because of the tremendous interest from South America, Sub-Saharan Africa and parts of Asia,” he said.

Erik Voorhees, CEO of Swiss-based digital asset exchange ShapeShift, said Dimon’s comment is a classic case of fearmongering because banks are concerned about bitcoin potentially taking away some of their core businesses.

“Jamie Dimon has every interest in the world in disparaging Bitcoin and working with his friends in government to regulate and suffocate it,” Voorhees said.

The threat is real, according to Ari Paul, co-founder of the newly formed BlockTower Capital. He sees bitcoin eventually displacing offshore Swiss and Cayman bank accounts that JPMorgan and other banks have opened for their wealthy clients. Trillions of dollars are held in such accounts.

“Cryptocurrency serves this function an order of magnitude better than the existing banking system,” Paul said. “I suspect that Dimon recognizes this, and is trying to delay the inevitable replacement of one his bank’s core services by a far more efficient upstart.”

The way most crypto enthusiasts see it, nothing Dimon says or does can stop bitcoin’s inevitable expansion across the globe and into more industries.

“Bitcoin is a bit like flood water,” said Union Square’s Wilson. “It’s hard to keep out of your society.”

Source: Tech CNBC
Bitcoin fans fire back at Jamie Dimon after 'fraud' comment

Comments are closed.