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.

Financial Conduct Authority Impersonated in Email Bitcoin Scam

Neil Dennis

The latest bitcoin scam, reported heavily by Twitter users over the weekend, appears as an email and claims to be from British market regulator, the Financial Conduct Authority (FCA).

Recipients of the email, which also tries on the stamp of authenticity by including the Bank of England Prudential Regulation Authority logo, are sold the idea that bitcoin is a "guaranteed chance to earn".

It claims:

Bitcoin is still a long way off its peak price of $20,000, which it reached in December 2017, but some cryptocurrency experts believe it could hit an even higher value by 2020.

The giveaway, however, that this isn't from a legitimate source is on the redirect button which encourages those interested to "Click her".

Email Lands in Inboxes

Indeed, one Twitter user to notice was Dominic Thomas, who reported to the FCA via Twitter that he'd received the email five times since Friday.

FCA's Advice

While the FCA did not comment directly on the new email scam, it has seen many such attempts by scammers to cash in on its legitimacy and has some general advice posted on its website.

Some fraudsters contact people and firms through emails, letters and on the phone, claiming to be from the Financial Conduct Authority (FCA) or using the name of FCA employees to make them seem genuine.

It advises that all genuine communication from the FCA would be from email addresses ending @fca.org.uk and @fcanewsletters.org.uk. All web addresses will end with the domain name fca.org.uk.

It goes on to warn:

We would never ask a consumer for personal information like bank account details or internet banking passwords.

Its final piece of advice is that if something sounds too 

Remember: if it sounds too good to be true, it probably is!

And for your security, watch out for that bad grammar.