Most, most, amusing

When the boss of Wall Street’s biggest bank calls a bubble, the world inevitably sits up and listens, albeit with a sense of historically weighted irony: of course an investment bank boss would spot disaster after his industry presided over the last one. Jamie Dimon, the chief executive of JP Morgan, said last week that the ascendancy of the virtual currency bitcoin – which has risen in price from just over $2 in 2011 to more than $4,000 at points this year – reminded him of tulip fever in 17th-century Holland. “It is worse than tulip bulbs,” he said. “It could be at $20,000 before this happens, but it will eventually blow up. I am just shocked that anyone can’t see it for what it is.”

For the usual Guardian critique of bankers is that they wouldn’t know a bubble until it had popped in their face, isn’t it?

5 thoughts on “Most, most, amusing”

  1. Did I see that as soon as Dimon’s words had caused a price reduction in Bitcoin his bank bought some? What on earth is that about? Strange. Puzzling. An enigma within etc etc.

  2. @dearime

    Bitcoin fell for a fifth day [article dated 14/9/17], the longest losing streak in more than a year, after one of China’s largest online exchanges said it would stop handling trades by the end of the month amid a government crackdown on cryptocurrencies.

    https://www.bloomberg.com/news/articles/2017-09-14/bitcoin-tumbles-as-chinese-exchange-says-it-will-halt-trading

    Virtual currencies of course are a major headache for tax-collectors worldwide, so the Chinese action can be seen as blowback.

  3. The ability to keep* hard-earned gains out of the hands of Spud and his thieving mates is one of the chief attractions of cryptocurrency.

    * or, at least, more easily keep.

  4. Is it tax collection – which cryptocurrencies do not really hamper – or is it the loss of seignorage that so upsets governments?

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