Jamie Dimon and Warren Buffett Double Down as Bitcoin Critics
Two of Wall Street’s highest-profile investors, Warren Buffet and Jamie Dimon, penned a joint editorial in the Wall Street Journal on Wednesday while spending time together this week. According to the legends, the practice of revealing quarterly earnings among public companies is hurting the economy.
In a joint interview on CNBC which was aired on Thursday, both were reminded about their widely publicized criticism of bitcoins. Warren Buffet has criticised bitcoins on several occasions. He even called bitcoins a real bubble and suggested that cryptocurrencies will face an impending doom. On an occasion, Warren Buffet said investing in bitcoins is like spending money on gambling. Recently in May, he had called bitcoins a rat poison squared.
In the interview when the host asked which one of you hates bitcoin more? Buffet said, “I do not know whether Jamie Dimon can top me or not.” While Dimon said, “I do not want to be the spokesman of bitcoin but you should beware of bitcoins.” In 2015, Jamie Dimon called cryptocurrencies a waste of time and in 2017 he labelled bitcoin a fraud. This was a statement on which the Wall Street banker has to regret. Last year, Dimon had publicly said that he would fire the JP Morgan traders in a second if he found them engaging in cryptocurrencies. He also said cryptocurrency is against our rules for two reasons; one, they are stupid and second, they are dangerous.
It was revealed in JP Morgan’s annual report filed with SEC in 2017, that the banks are considering cryptocurrencies such as bitcoin as a threat to their business model. JP Morgan has directed its FinTech program to formulate a bank’s cryptocurrency strategy.