Jamie Dimon of JP Morgan: Bitcoin is a "Fraud"

JP Morgan Chase's CEO slammed Bitcoin as a fraud that is not going to end well and only rises on speculation.

JP Morgan Chase CEO Jamie Dimon called Bitcoin "a fraud", claims he would fire employees for trading cryptocurrencies ."It's worse than tulip bulbs. It won't end well. Someone is going to get killed," Dimon said, claiming that the price of Bitcoin and other cryptocurrencies is pure speculation, much like the tulip bulb mania of the 17th century.

The comments of Dimon arrive at a time when cryptocurrency market moods are easily turning negative. In the past 24 hours, the markets turned downward again, with Bitcoin breaking down below the $4,000 support level, dragging the rest of the coins and tokens with it.

Dimon shared his negative sentiment of Bitcoin at a bankers' conference in New York. He added that he would fire any investment banker caught trading Bitcoin.

"I would fire them in a second, for two reasons: It is against our rules and they are stupid, and both are dangerous."

But still, JP Morgan Chase is not behind the trend of using blockchain technologies. The bank is running a trial project for a blockchain solution to trading.

And Dimon admitted Bitcoin could continue to grow in price, to unpredictable heights, before finally crashing.

Dimon's statement comes at a time of bad news for the cryptocurrency market. The complete scope of China's restriction on ICOs is unclear. There are still statements suggesting that all cryptocurrency trading may in the end be restricted, although the major Chinese exchanges are still working. “You just saw in China, governments like to control their money supply,” added Dimon.

Other investment companies are more sympathetic to Bitcoin and cryptocurrencies. The Winklevoss brothers are making another attempt to offer mainstream investment into Bitcoin after their proposal for a Bitcoin exchange-traded fund (ETF) was shot down in May. The CBOE, Inc., owners of the Chicago Board of Options Exchange, teamed up with Gemini Trust Co. to offer a Bitcoin futures investment vehicle. It is still unknown if such a project would get approval.

“Like it or not, people want exposure to bitcoin,” said Ed Tilly, CEO of CBOE, Inc.