JP Morgan Chief Dismisses Bitcoin, Says It'll "Blow Up"

JP Morgan CEO Jamie Dimon is far from bullish on Bitcoin. In his mind, it's little more than a bubble and the entire concept of a Bitcoin-like cryptocurrency is basically just good for criminals and for people in oppressive countries. At a conference in New York, he went off on his disdain for the digital currency.

The currency isn't going to work. You can't have a business where people can invent a currency out of thin air and think that people who are buying it are really smart. - Dimon

Bitcoin's value has grown significantly in the past year, rising to around $5,000. It's spent most of its history under $1,000. Dimon doesn't think this means the currency actually has any hard value in society.

It is worse than tulip bulbs...Don't ask me to short it. It could be at $20,000 before this happens, but it will eventually blow up. Honestly, I am just shocked that anyone can't see it for what it is.

Some people in the mainstream financial industry have dismissed Bitcoin due to some associations with criminal activity. Though that association persists (and also does with regular fiat currency), there have been many legitimate applications of the technology.

If you were in Venezuela or Ecuador or North Korea or a bunch of parts like that, or if you were a drug dealer, a murderer, stuff like that, you are better off doing it in bitcoin than US dollars. So there may be a market for that, but it would be a limited market.

After Dimon made those statements, Bitcoin's value took a 6% hit on Wednesday.