Jamie Dimon, Warren Buffett Tell Investors to “Just Beware” of Bitcoin

Francisco Memoria
  • JP Morgan's Jamie Dimon and Berkshire Hathaway's Warren Buffett are known bitcoin bears.
  • During a joint interview, they recently told investors to "just beware" of the cryptocurrency.

JP Morgan’s chief executive Jamie Dimon and billionaire investor Warren Buffett are two well-known bitcoin bears who, on numerous occasions, slammed the flagship cryptocurrency. During a joint interview on CNBC’s “Squawk Box,” the critics told investors to “just beware.”

In the joint interview, CNBC’s host asked the two Wall Street giants which one of them hated bitcoin more. Buffett, the CEO of Berkshire Hathaway, was the first one to answer, saying:

“I set a high standard. I don’t know whether Jamie can top me or not.”

Warren Buffett

Warren Buffett seemingly criticizes the flagship cryptocurrency whenever he can. In the past, he’s called it a “mirage,” and argued that buying it isn’t investing. Moreover, the billionaire investor stated cryptocurrencies will come to a “bad ending,” and that bitcoin itself is a “real bubble.”

Last month, during Berkshire Hathaway’s annual shareholder meeting, Buffett and the company’s vice chairman Charlie Munger slammed bitcoin. While the chief executive compared the cryptocurrency to “rat poison squared,” the vice chairman compared it to “turds,” and “dementia.”

JP Morgan CEO Jamie Dimon replied to CNBC’s question right after Warren Buffett, stating:

“I don’t want to be a Bitcoin spokesman, you know. Just beware.”

Jamie Dimon

Dimon was notably one of bitcoin’s biggest critics. In 2015 he called the cryptocurrency a “waste of time,” while last year he labeled it a “fraud.” While facing backlash, he revealed he regretted his comments on bitcoin, and as its price grew claimed he no longer wanted to talk about it.

At the time, the Wall Street personality even claimed he would “fire in a second” any JP Morgan trader found to be engaging in cryptocurrencies, as it was both against the financial institution’s rules, and was “stupid.”

As CryptoGlobe covered, last month a former executive director at JP Morgan said that major banks are going to enter the crypto space “sooner than people probably think.” The financial institution, in late 2017, labeled cryptocurrencies a threat to its business model in an annual reported filed with the SEC.

Cryptocurrencies ‘Will Never’ Replace Fiat Currencies, Says Romanian Central Bank Official

Daniel Daianu, a member of the Romanian National Bank (BNR)’s administration Council, has reportedly recently stated he believes cryptocurrencies aren’t going to be able to replace central bank fiat currencies, as these aren’t exactly currencies.

According to local news outlet Business Review, Daianu revealed there’s a need to be aware of the difference between institutions and their roles, as these roles won’t be disappearing in the near future.

The central bank official added that it’s important to make a distinction between blockchain technology and digital currencies, presumably those based on distributed ledgers. Daianu was quoted as saying:

In my opinion, these are financial assets, not cryptocurrencies, and they won’t be able to fulfil the basic roles of currency. Currency is always backed by a last-resort lender. In markets, the state is the only possible last-resort lender. When the banking system was saved, it wasn’t crypto banks that were saved.

The central bank official added be believes “cryptocurrencies will never be able to substitute the currency issued by a central bank,” but that it may be possible for central banks to issue their own digital currencies. He consented that new technologies lead to “disintermediation and this feature of decentralization shows us the merits of networks.”

The central bank official’s words notably come shortly after a Romanian duo was convicted of running a cryptojacking scheme that involved infecting over 400,000 computers with malware. The scheme reportedly netted the duo millions worth of cryptocurrency.

Romanian authorities have last year revealed they suspected the country’s “resist” movement could’ve been involved in money laundering and other illicit activities. The group’s operation may have been supported with cryptocurrency payments.

Notably, last year, the country’s oldest bitcoin exchange was forced to shut down. The exchange, BTCxChange closed its doors shortly after its bank account was closed.