Bitcoin climbed as high as $1,038 this morning, before dropping back towards $1,000. This was the third attempt at breaking out above the psychologically important $1,000 level so far this year. I believe it is only a matter of time before $1,000 turns from resistance into support and Bitcoin marches towards $2,000 or higher. With an online retailer as large at Overstock.com now accepting Bitcoin for payment, mainstream acceptance and usage can only continue to grow.

bitcoin chartThis uptick higher in the Bitcoin price came despite Jamie Dimon, head of the largest bank in the US, saying that bitcoin is a “terrible store of value.” Dimon told CNBC that the cryptocurrency does not have much staying power because the hurdles it faces are insurmountable.

jamie-dimon-bitcoinIt’s a terrible store of value. It could be replicated over and over,” he said. “It doesn’t have the standing of a government.”

And honestly, a lot of it – what I’ve read from you guys – a lot of it is being used for illicit purposes. And people who will get upset with it is governments,” Dimon said. “Governments put a huge amount of pressure on banks: know who your client is, did you do real reviews of that. Obviously it’s almost impossible to do with something like that.”

Dimon speculated that bitcoin will soon become popular enough that the government will intervene, which could spell out the cryptocurrency’s demise.

They will eventually be made as a payment system to follow the same standards as the other payment systems and that will probably be the end of them,” he said.

Of course, Dimon failed to mention how Bitcoin threatens the exhorbitant fees that banks like his charge for transferring money around or how he will not be able to print money out of thin air and pay artificially low rates while charging customers higher interest rates. Movement away from the big banks and towards an open-source, decentralized currency may eventually threaten Dimon’s $20 million annual salary. Jamie Dimon got a 74% pay hike for last year, even though the bank was forced to pay billions in fines and settlements last year.

I almost feel bad for him. Not really, but it certainly does explain why he took to the press to bash Bitcoin in any way possible. Banksters are desperately clinging to a dying system that has kept them swimming in money and power for nearly a century. Bitcoin is a direct threat to their system… thanks Satoshi!