Is Bitcoin a scam?

Is Bitcoin a scam?

Bitcoins are often used to handle criminal transactions. For JPMorgan boss Jamie Dimon, the world's most powerful banker, the digital currency is even "fraud". Is he right?

Jamie Dimon, head of the US bank JPMorgan, has triggered a heated debate over the Bitcoin. The digital currency is "fraud", is suitable for murderers or drug dealers and will collapse in itself as in 1637 speculation on tulip bulbs.

In fact, the course of Bitcoin, which has always fluctuated greatly, has broken in the days following Dimon's scolding. But is the creation of bitcoins or trading illegal, as perhaps the most powerful banker in the world suggests? The short answer is no. Although Bitcoins are often used for the settlement of criminal transactions, because no traces on bank accounts arise - this also applies to cash.However, the virtual currency differs significantly from traditional currencies. While euros or dollars are spent by central banks, basically everyone can participate in the creation of new Bitcoin units. They are created by updating an endless code, and all payments and credits are stored on a huge, decentralized computer network. Neither central banks nor commercial banks such as JPMorgan - which create money from nothing by lending - thus have the direct influence on the Bitcoin.The German Financial Supervisory Authority BaFin classifies bitcoins as financial instruments that can be used as a means of payment on the basis of private-law contracts. In Japan, digital currencies like Bitcoin are even recognized as legal tender.By contrast, China has recently continued to restrict its trade in bitcoins. When a Chinese Bitcoin exchange announced that it would cease operations on Thursday, the price plummeted worldwide. At the moment, it looks like Bitcoin speculators may well fare like the buyers of tulip bulbs.