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Credit Suisse CEO claims Bitcoin is 'the very definition of a bubble'

Bitcoin is ‘very definition’ of a bubble, says Credit Suisse CEO.

It seems every day there is something else in the news about Bitcoin and now Credit Suisse have waded into the discussion. Group AG Chief Executive Office Tidjane Thiam has said that it is the "very definition of a bubble," based on the fact that the whole concept seems to revolve around making money.

“From what we can identify, the only reason today to buy or sell bitcoin is to make money, which is the very definition of speculation and the very definition of a bubble,” he said at a news conference in Zurich yesterday. He added that in the history of finance, other ventures have “rarely led to a happy end.” It seems that Thiam isn't the only one speaking out about the currency, with JPMorgan Chase & Co CEO, Jamie Dimon calling bitcoin "a fraud that will eventually blow up" and UBS Group AG Chairman Axel Weber stating that "bitcon has no intrisic value as it is not secured by underlying assets." Thiam also said that banks hesitation to embrace bitcoin was due to its lack of transparency; “Most banks in the current state of regulation have little or no appetite to get involved in a currency which has such anti-money laundering challenges,” he said.

Despite all this, the world's largest exchange owner, CME Group Inc, announced this week that they plan to introduce bitcoin futures by the end of next year, citing overwhelming demand from clients.