According to Ken Griffin, bitcoin has some significant disadvantages that could lead to other cryptocurrencies displacing it as the market leader.
Ken Griffin, Founder and CEO of the multinational hedge fund Citadel LLC, is skeptical of bitcoin and its applications. He believes that another cryptocurrency project, such as Ethereum, will emerge as the dominant player in the digital asset universe.
Bitcoin Could Be Replaced at the Pinnacle
Despite ups and downs throughout the year, bitcoin’s value has more than doubled in the last eleven months. Among the factors that propelled the asset to its current heights are institutional adoption and significant support from prominent investors and entrepreneurs, some of whom frequently describe it as a great store of value.
Separately, BTC became legal tender in El Salvador in September, paving the way for it to be adopted on a national scale.
However, it is not all rainbows and sunshine, and the primary cryptocurrency has its detractors. Ken Griffin, the CEO of Citadel, is one of them. In a recent interview, he stated that bitcoin is too harmful to the environment, has slow transaction speeds, and is prone to fraud.
Keeping these drawbacks in mind, he believes that Ethereum or another cryptocurrency based on its blockchain, which has a smaller energy footprint and lower transaction costs, will usurp BTC’s dominance.
Mark Cuban, the billionaire investor and owner of the Dallas Mavericks, recently endorsed Ethereum and its native token. According to him, beginners in the cryptocurrency industry should invest in ETH because it has the most upside potential.
Griffin also mentioned the rising inflation and financial crisis that began to shake most economies. He questioned whether cryptocurrencies could solve those monetary issues, implying that a digital dollar might be more useful in the initiative.
Nonetheless, he appears to support blockchain, describing it as a “really interesting technology and a powerful way to maintain a global decentralized ledger.”
If the cryptocurrency industry is regulated, Citadel will provide crypto services.
Griffin previously attacked bitcoin and alternative coins in a previous appearance last month, claiming they could harm the US dollar. He went on to say that some people’s trust in digital assets rather than the US national currency is a “Jihadist call.”
Even though Griffin is not the most enthusiastic supporter of cryptocurrencies, his firm would still provide such exposure to its clients if there is “regulatory clarity” in the space:
“We don’t trade cryptocurrency due to regulatory uncertainty.” When there is regulatory clarity, the market will become far more competitive, which is a good thing… I’d trade it because it would meet the needs of our brokerage partners, who want a tier-one firm to make pricing decisions.”