NEW YORK, - Multinational financial services agency JPMorgan Chase & Co said, the virtual currency is not an effective currency. JPMorgan in its letter to clients stated, the virtual currency only makes sense as a hedge in the investment portfolio. "The magnitude of the volatility of the price of the virtual currency has made its use impractical," said JPMorgan, quoted by Bitcoinist.com, Monday (2/19/2010). Indeed, virtual currencies such as bitcoin and litecoin are difficult to adopt as conventional currency. However, in the letter, JPMorgan does not mention a number of potential innovations such as Lightning Network using bitcoin or Visite-based LitePay transactional litecoun services that can make the virtual currency act like a conventional currency. JPMorgan said, although if the value of the virtual currency is not easy to fluctuate, it will still be difficult also to counter the conventional currency. However, due to its independent status alias knows no national borders, then the virtual currency has the potential to attract vendors or merchants in many areas.
Earlier, JPMorgan CEO Jamie Dimon confirmed that the virtual currency is a fraud aka financial crime. "Not the real thing, will end," said Dimon. Dimon was joking that his daughter even bought bitcoin on the grounds of following the trend and wanted to enjoy the advantages of strengthening the value of bitcoin is crazy. "I'm not saying to sell and sell 100,000 dollars of bitcoin before it drops.This is not a suggestion of what to do, my daughter bought bitcoin, then got stronger, and now she thinks she's a genius," Dimon said. On a separate occasion, Dimon once said that the phenomenon of bitcoin as well as the phenomenon of tulips in the 17th century ago. In fact, according to Dimon, bitcoin phenomenon is more severe. "It will not end either. The currency has legal support. (Bitcoin) will explode," Dimon said.