Despite the recent market upturn, billionaire Ken Griffen, Founder of Citadel, remains extremely skeptical towards cryptocurrencies. In an interview with CNBC published this morning, July 18th, Griffen stated that there was, “No need for cryptocurrencies,” adding that “they are a solution in search of a problem.”
Ken Griffen’s hedge fund firm, Citadel, manages more than $30 billion in assets. Griffen himself is reported by Forbes to have a net worth of over $9 billion. When it comes to crypto, Griffen says that he has a hard time becoming a liquidity provider in a product he doesn’t believe in.
“I don’t have a single portfolio manager who has told me we should buy crypto, not a single portfolio manager.”
Griffen’s biggest concern about cryptocurrency comes from what he perceives as a lack of real world utility of digital money. He also questions the value of a currency without any government backing.
“What people don’t understand with cryptocurrencies vs for example, the US dollar, is that you have to use US dollars to pay your taxes at the end of the year. You don’t have a choice. There’s no need for cryptocurrencies.”
Like many in the mainstream financial sectors, Griffen is concerned that the value of cryptocurrency has been wildly overblown by its supporters. He concludes his interview with a lamenting sentiment directed towards young cryptocurrency investors:
“What’s unfortunate is the amount of hype and the number of early investors who have been caught up in this hype. I wish the 27-year-old wasn’t buying Bitcoin. I wish they were investing in the companies that define the future of our country, and pushing capital to create jobs, create innovation, and grow our economy.”
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