SCOTS businesswoman Michelle Mone has criticised the chairman, president and chief executive of the largest of the Big Four US banks, over his disparaging comments on Bitcoin.

Ms Mone has been on the PR offensive, defending her plan to sell luxury flats through virtual currency as part of a £250 million Dubai property venture saying it is no gimmick.

And she has spoken out after Jamie Dimon, chief executive of JPMorgan Chase told a conference that Bitcoin is a "fraud" and "not the real thing".

The Herald: Jamie Dimon, chairman and chief executive of JPMorgan. Credit: Steve Jurvetson.

He even said he would "fire in a second" any JPMorgan trader who was trading Bitcoin noting two reasons: "It's against our rules and they are stupid."

In an appearance at a separate conference, Dimon said Bitcoin mania is reminiscent of the tulip bulb craze in the 17th century.

"It's worse than tulip bulbs. It won't end well. Someone is going to get killed," Mr Dimon said at a banking industry. "Currencies have legal support. It will blow up."

Ms Mone took to social media to comment, saying: "Another person who doesn't know what he's talking about."

Some responded by questioning her support of Bitcoin.

The Herald:

The Conservative peer and her partner Doug Barrowman, chairman of the Knox group of companies, claim their Aston Plaza and Residences development will be the "first major development" to be priced in the volatile virtual currency Bitcoin.

Talking about regulatory concerns over the virtual money, Ms Mone said last week that she would not be getting involved in Bitcoin if it was not a trustworthy investment.

The Herald:

She said: "It's the currency of the future. And I think because everything is logged and registered, everything's transparent, that I wouldn't be getting involved in it — especially from the House of Lords element. I'm a baroness — so I wouldn't be getting involved in it if it was a kind of 'dodgy' industry."

Bitcoin, is a digital currency that is created and held electronically and emerged in the aftermath of the financial crisis.

With confidence in the banking system badly shaken, international investors were looking for an alternative way to store and transfer ‘value’.

Unlike conventional currency there are no printed notes or minted coins. This helps keep transaction costs to a minimum, and ensure Bitcoins can be transferred from one account to another quickly.

The Herald:

But the virtual currency is known for wild fluctuations in price.

On Thursday the value of one Bitcoin - which was created in 2008 by an anonymous programmer or group of programmers - was worth just below £2,500 - a 36 percent dip from its all-time high of £3,836 on September 2.

Dimon's criticism came at a time when some well-known figures on Wall Street starting to embrace Bitcoin. Fundstrat's Tom Lee said he sees Bitcoin becoming more valuable next year and value investor Bill Miller reportedly owns Bitcoin.

The Herald:

Ms Mone said that "it's fast it's easy and it's transparent" but admitted that she would be converting Bitcoins received into dollars to avoid risk.