John McAfee on Wednesday challenged Jamie Dimon’s skeptic statement about bitcoin. Jamie Dimon who is CEO at JPMorgan on Tuesday called Bitcoin a fraud. This has caused McAfee to speak out against Dimon’s statement. McAfee’s whose company MGT Capital Investments mines cryptocurrencies believes Dimon’s statement is unfortunate.
Whiles speaking with CNBC’s “Fast Money”, he rebutted “You called bitcoin a fraud… I am a bitcoin miner. We create bitcoins. It costs over $1,000 per coin to create a bitcoin. What does it cost to create a U.S. dollar? Which one is a fraud? Because it costs whatever the paper costs, but it cost me and other miners over $1,000 per coin. It’s called proof of work.”
He further stated that miners invest massive amounts of supercomputing power and electricity into the mining of the cryptocurrency as such Dimon’s claims were frivolous and ill-informed. He believes the huge investments made in mining the cryptocurrency goes to show that it has value and huge potential.
“And the fact that it is consistently growing in its use and its value has to say something” McAfee said. “Sure it will rise and fall as all new technologies are, but at the same time, it is certainly not a fraud”
In a twitter post earlier this summer, McAfee made a rather outlandish bet that bitcoin would reach $500,000 within three years. He further pointed to the fact that different people over the years have called bitcoin a bubble that will burst but the coin keeps getting resilient by the day and surpassing their expectations.
McAfee is known for founding the McAfee Security antivirus software products, and he is also a part of the Intel technology company. He is of the view that the long-term trajectory of bitcoin is upwards and the current volatility will stabilize with time.
The less-than-palatable news coming out of China and somewhat coupled with Dimon’s statement is believed to be responsible for the recent FUD that has caused the market to be bearish. A section of traders are however of the opinion that a correction of the market was always in the offing considering recent exponentially strong performance. It is however believed that the market is almost at a solid support point and will be headed for recovery in the next couple of days.