Four months after calling Bitcoin a fraud, which he believed was going to blow-up, JP Morgan CEO Jamie Dimon has said that he regrets making that statement in an interview with FOX Business Network. However, he said that he still had no interest in the star cryptocurrency which has gripped the sentiments of the market.
Jamie Dimon, meanwhile, also praised the technology behind Bitcoin — blockchain–, saying the ledger system is also being used by an increasing number of companies for record keeping, “is real.” In September, at an event in New York, Jamie Dimon had said, “Bitcoin is a fraud and will blow up”, adding, “the currency isn’t going to work.”
“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,” Jamie Dimon had said. His observation about the virtual currency as “dangerous” was in sync with many governments, which are either keeping a close eye on it or is planning to ban it. As Jamie Dimon said, many analysts, too, believe that Blockchain technology is going to work in the future.
Bitcoin vs Blockchain: The difference
Bitcoin: Bitcoin is a type of cryptocurrency, which operates on the encryption technique, but does not have a legal backing from the central bank. It is an unregulated digital private currency created by Satoshi Nakamoto in 2009.
While any cryptocurrency launched as a sovereign digital alternative to currency is legal and promises to pay the value encrypted in it, Bitcoin has no such value as it is like a digital form of private currency. Bitcoin does not have any underlying asset or value-base.
Blockchain: Blockchain a technology in which transactions made in digital currencies are recorded chronologically and publicly. Blockchain as a technology supports Bitcoin trading, but it not synonymous with Bitcoin. Blockchain can be used for a wide variety of applications, such as tracking ownership or the provenance of documents, digital assets, physical assets or even voting rights.