Originally known as the technology behind the bitcoin cryptocurrency, blockchain has been showing it has the potential to disrupt many different industries in recent months. This futuristic technology is going to have a big impact on international payments, cloud storage, supply chain management, and music distribution in the near future.
In 2016 alone, venture capitalists invested over a billion dollars into the research and development of blockchain technology to further probe the viability of the technology. Despite this, there are still those that are yet to be convinced.
JPMorgan CEO Jamie Dimon labelled the cryptocurrency a “fraud” during his speech at the Delivering Alpha conference in New York on Tuesday. “The currency isn’t going to work,” he said. “You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart.”
The cryptocurrency and blockchain technology market could be worth $42 billion by 2022, according to a recent market research report. It says the prime drivers of the crypto-currency market include proper security, authentication, ease of transactions and “push mechanism” that allows the crypto-currency holder to send exactly what he wants without any further information. Globally, more than 70% of the mobile phone users prefer transactions over their phones, which is one of the major drivers for the market growth.
Even Dimon's own bank, JPMorgan, has reportedly begun a trial project using blockchain as it tries to cut trading costs. But he believes people should exercise caution if they are considering cashing in on the trend.
"I'm not saying 'go short bitcoin and sell $100,000 of bitcoin before it goes down," he said. "This is not advice of what to do. My daughter bought bitcoin, it went up and now she thinks she's a genius."
In a separate appearance earlier in the day, Dimon drew comparisons between bitcoin the tulip bulb craze in the 17th century.
"It's worse than tulip bulbs. It won't end well. Someone is going to get killed," Dimon said at a banking industry conference organized by Barclays. "Currencies have legal support. It will blow up."
He also said he'd "fire in a second" any JPMorgan trader who he found trading bitcoin.
Bitcoin has already soared 315 percent this year.
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