Friday, January 24, 2014

JPMorgan Chase CEO denounces bitcoin as ‘terrible,’ predicts its downfall

JPMorgan Chase CEO denounces bitcoin as ‘terrible,’ predicts its downfall

Jamie Dimon, the CEO of JP Morgan Chase - which has $2.509 trillion in total assets - told CNBC that the cryptocurrency does not have much staying power because the hurdles it faces are insurmountable.

“It’s a terrible store of value. It could be replicated over and over,” he said. “It doesn’t have the standing of a government.”

Bitcoin proponents say that the currency’s ability to exist without any centralization is what makes it so appealing. It is a peer-to-peer payment system that is formulated when computers compete with each other to “mine,” or solve cryptographic problems, and are assigned bitcoins as a reward.