Cyber security pioneer, creator of the McAfee Security antivirus software, and current CEO of MGT Capital Investments, Inc. (OTC Pink: MGTI) John McAfee, rebuked JPMorgan Chase & Co. (NYSE: JPM) CEO Jamie Dimon’s criticism of Bitcoin. On Wednesday, September 13, 2017 McAfee went on CNBC’s Fast Money to discuss his position on the cryptocurrency debate.
Just one day earlier, Jamie Dimon made headlines after calling Bitcoin a “fraud” and said he would fire any of his traders that were caught trading the cryptocurrency for “being stupid.” Delivering some of the harshest criticism of Bitcoin and cryptocurrencies to date.
“You called Bitcoin a fraud,” McAfee says during his CNBC interview 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.”
Bitcoin miners, like MGT Capital Investments, Inc., invest vast amounts of money in high-tech, super computers that are able to create Bitcoins. “And the fact that Bitcoin is consistently growing in its use and its value has to say something,” details McAfee. “Sure it will rise and fall as all new technologies are. But at the same time, it is certainly not a fraud.”
However, it appears McAfee’s defense has done little to stop the sell off within cryptocurrencies. On Thursday, Bitcoin dropped 10.72% to $3,458 and Ethereum dove 12.65% to $240.88. After the recent global regulation crackdown and increased criticism from leaders, it appears traders are taking their foot off the gas pedal, which has pushed Bitcoin up several hundred percent year-to-date. While the sell off may be warranted after such an explosive rally, the cryptocurrency movement continues to grab headlines and only continues to show signs of expansion.