Bitcoin is a highly risky currency that, through its untraceable nature, is convenient for illegal activity and little else, infers JP Morgan CEO Jamie Dimon. While it may currently be growing and has reaped dividends for some, it is bound to crash eventually. Its popularity may, in part, be attributed to illegal use, such as purchasing drugs or even the hiring of assassins. People in failing economies, such as in Venezuela, might also find use for it. But the FCA, the UK’s financial regulatory body, warns that investing in Bitcoin could result in heavy losses. The cryptocurrency may be doing well at the moment, but it is destined to fail.
The emergence of Bitcoin may result in market crashes and general uncertainty. However, this isn’t unusual for new technologies, and it certainly doesn’t make it a fraud, asserts Kevin Werbach of The Hill. JP Morgan CEO Jamie Dimon’s assertions about the currency were misinformed. Simply because Bitcoin not being backed by a government doesn’t mean it’s inherently riskier than physical currencies, which Venezuela’s Bolivar and many others have shown. The decentralized nature of the cryptocurrency means no single entity can just close it. As long as people somewhere continue to use it, Bitcoin will survive.