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Citadel’s Griffin Hits out at Bitcoin as Hype

Citadel’s Griffin Hits out at Bitcoin as Hype

Ken Griffin, the CEO and the founder of the Citadel Hedge fund continued to play down the ascendency of Bitcoin as the money of the future. He was addressing at the Alpha Conference in New York and found it to be the perfect platform to continue his cryptocurrency as a failure diatribe.

Griffin diatribe

In his view, the use of the cryptocurrency and its generation is a mindless game which the youngsters should stay away from. He explained that it was a very unproductive platform and engaged the productive minds of the youth in non-purposeful currency. He even called bitcoin as something which he preferred to scratch his head about.

At the conference, he was vitriolic as he said, “I don’t have a single portfolio manager who has told me we should buy crypto, not a single portfolio manager. There’s no need for cryptocurrencies. They’re a solution in search of a problem.”

In his opinion, the currency had only created a new season of problems which his company is having a “hard time” to resolve. The issue is about “a liquidity provider for a product that he [does not] believe in.”

Griffin believes cryptocurrencies are similar to the 1600s mania for “Dutch tulip bulb” which had a sad ending. In his opinion investing in cryptocurrency appears to have no concrete returns for any class of investors. The current phase was only a ‘bubble’ waiting to burst, and the end would only be tragic in all consideration the financial capitalist opined.

He does have a lot of clout in the industry, considering that his firm is one of the oldest in its category – hedge funds. It has to be said that as the owner of a company that manages assets of investors to the tune of $30 billion, there is bound to be the truth. However, his stance is not vindicated by key players in this space. Moreover, there has been a slow conversion to the cause of cryptocurrencies lately as well. Blackrock began a new and interesting turn around by backing the decentralized database technology as the basis for many of the world’s centralized solutions, included fiat-currency.

Other players include Point 72 Asset management fund Steven Cohen who invested in Autonomous Partners crypto for its blockchain technology.

Fund owners back BTC

BlackRock which has one of the largest Exchange Traded Funds in the industry has revealed that BTC has one of the largest asset potentials in the future. However, BlackRock reiterated that is primary interest is the blockchain technology and that it will allow financial solutions in the future.

Goldman Sachs to has turned the corner towards bitcoin with, its long CEO a long time critic of the digital currency format announcing that his company is exploring the blockchain technology and eager to offer cryptocurrency products, given investor interest in the same.

As the world of institutional investors begins to take the opportunity to offer products which are better built for tomorrow’s technology-backed economies, Griffin could soon become a member of the minority community.