Bitcoin Receives Criticism From Hedge Fund Billionaire & Citadel Founder
During the recently held CNBC institutional investor Delivering Alpha Conference, Ken Griffin expressed his disapproval against cryptocurrencies. Even though Griffin’s view caught a lot of attention, it is however not the first time he is expressing his disapproval.
Last year in December, when bitcoin was trading at its peak, Griffin noted the coin hype was a bubble. Different from other opinions, he was confident that bitcoin was not a fake yet the bubble will finally burst. At the time, Griffin stated that blockchain technology would at some point have a significant influence on the future world order.
Since that time, he has always been clear about his stance. During an interview with business journalist Andrew Ross Sorkin, Griffin expressed his views regarding cryptocurrencies at Pierre Hotel’s ballroom in New York.
Sorkin provoked Griffin, questioning him about what he advised his portfolio managers who wanted to invest in cryptocurrencies. Griffin was quite to respond that, “I don’t have a single portfolio manager who has told me we should buy crypto. Not a single portfolio manager.”
It was shocking that the billionaire admitted he has considered if his company should invest in cryptocurrencies. Yet, he was eventually unable to invest in it, as he believes cryptocurrencies are not a product he is confident in.
According to Griffin, cryptocurrency cannot thrive due to the fact that there already exist mandatory option-fiat currencies. Regardless of the opinion of people, there are still required to use their national currencies to make transactions and payments.
In this vine, Citadel’s CEO believes cryptocurrencies are “a solution in search of a problem,” going on to stated that, “there is no need for cryptocurrencies.” Even though his opinion is strong, there is still truth in them. Presently, few people can survive exclusively on cryptocurrencies.
Griffin ended the interview by giving a piece of advice to the millennials who are presently investing in cryptocurrencies. He advised them that instead of investing in cryptocurrencies, they should put in their funds in companies that will be beneficial to society, open jobs, and develop the economy.
