The value of the bitcoin is in free fall after recent events put its future in question. The Chinese government are set to shut down all domestic Bitcoin exchanges. The Chinese move to crack down on bitcoin comes as communist government begins to perceive it as a threat to its currency, especially as Chinese investors bought up bitcoin and bet against the yuan last year.
To further damage the value of the bitcoin J.P. Morgan CEO Jamie Dimon has slammed the crypto currency at a banking industry conference organized by Barclays has said the currency is “a fraud” and that it is only good for North Korea and drug dealers. He also added that a government crackdown on the currency is imminent and he would sack any banker working for him who touches bitcoin.
“It’s worse than tulip bulbs. It won’t end well. Someone is going to get killed,” Also adding “Currencies have legal support. It will blow up.”
Since his comments the value of bitcoin has dropped 25% from $5000 to $3,844.
Bitcoins total market capitalization value has also taken a massive dip, falling by more than $15.5 billion in this time, from $82.28 billion on Sept. 2 to $66.74 billion on Wednesday!
This is evidence that bitcoin and other crypto currency’s such as ethereum are extremely volatile and can be destroyed by remarks from a single banker! The currency is supposedly anonymous but this isn’t worth much when the value of the coins can disappear over night!