Tech legend and all round good guy, John McAfee has challenged JP Morgan CEO Jamie Dimon over his recent comments on Bitcoin. Dimon on Tuesday took a shot at Bitcoin, criticizing its existence and predicting doom for it.
Jamie Dimon had termed Bitcoin a fraud at the Delivering Alpha conference arranged by CNBC and Institutional Investor on Tuesday, saying the crypto market will soon burst like a bubble.
"It's just not a real thing, eventually it will be closed," he'd said.
His comments generated a lot of arguments on the internet and off of it, with many people taking sides. His opposers say Dimon is trying to deliberately crash the Bitcoin market so that he could get in on the action and make some bucks.
Others are not so subtle.
However, John McAfee, founder of popular computer anti-virus software firm McAfee, has rebuffed Jamie Dimon.
McAfee, who also owns MGT Capital Investments, a firm which mines Bitcoins, said he respects Dimon and people in his position "are not idiots," but challenged him to explain himself and his criticism of the cryptocurrency.
"You called Bitcoin a fraud," McAfee said on CNBC's "Fast Money" on Wednesday. "I'm 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 the fraud? Because it costs whatever the paper costs, but it costs me and other miners over $1,000 per coin. It's called proof of work."
McAfee further explained that miners invest "massive" amounts of supercomputing power and electricity in order to create Bitcoins, hence there is value in creating the crypto-coin.
"And the fact that bitcoin is consistently growing in its use and its value has to say something. Sure it will rise and fall as all new technologies are. But at the same time, it is certainly not a fraud", he said.
McAfee is a Bitcoin Bull. According to him, Bitcoin will be worth $500,000 in three years backing his claim with imaginative offer to eat his dick on national television if it didn't. He notes that Bitcoin has been called a bubble several times in the past only to keep on smashing people's expectations. Plus Bitcoin's long-term trend has been consistently up, he added.
On September 1st, Bitcoin hit a new all-time high of $5,000 and fell sharply days after, owing to China's ban on Initial Coin Offerings (ICOs) and the expected suspension of Bitcoin exchanges in the country.
Bitcoin has shed over $1,000 since then. At the moment it is worth $3,800 and remains volatile as investors remain confused about its future in China as China is the home of a majority of miners mining the crypto coin.