On 18th July, during an interview with CNBC, Kenneth Griffin, an American investor and Hedge Fund Manager said that there is no need for cryptocurrencies.
The Founder and CEO of Citadel, one of the largest alternative investment firms around the world said that he has not had a single portfolio manager who has suggested that they have to buy cryptocurrency. During the Delivering Alpha Conference, he stated that they have had debates on not to make a market in cryptocurrencies.
Kenneth Griffin says that he doesn’t believe in cryptocurrencies because of which he finds it hard to be a liquidity provider of cryptocurrencies. According to him, people don’t understand that when its cryptocurrencies versus U.S Dollars, people have to pay taxes with US Dollar at the end of the year, they don’t have a choice.
Moreover, in his opinion, there is no need for cryptocurrencies and they are a solution in search of a problem. Griffin says that the amount of hype and the number of early investors who have been caught up with the hype is unfortunate.
Griffin wishes that the younger generation invests in companies that define the future of the country instead of buying Bitcoin. He further adds that the companies they invest in should push the capital in such a way that it created jobs and innovation in the economy.
The statement made by the hedge fund billionaire has geared up the crypto-community. Majority of the community feels that Kenneth made the statement without doing a proper research on cryptocurrencies. In addition, they also believe that cryptocurrencies are better than fiat currencies in various ways and the current financial system is way more flawed. Some even say that the statement made was in order to increase his profits and has nothing to do with improving the community.
VMP, a Youtuber commented:
“He wishes us to step into the trap of investing into stocks that are growing just because of the fiat system that is constantly printing new money and inflating the stock prices… Ofc it might not be a problem for these old fools since they will have all died of old age by then and everything falls to us”
Charlie Mclaren, on Youtube, commented:
“Almost instantaneously low fee payment anywhere in the world but not only that but it’s possible for the billions of people that don’t have the option of owning a bank account. All with a currency that isn’t valued based on the whim of a government to print more money to pay off debts. No purpose though, yeah, sounds like you’ve really done your research.
He further added:
“Try telling a Venezuelan that Fiat currency isn’t a problem that needs to be solved. It’s laughable really that after the financial crisis, with hyperinflation spread across poorest nations of the world a hedge fund manager claims that put currency and banking system isn’t seriously flawed and a problem that needs to be fixed. Perhaps not for his billionaire clients. Oh and finally I love the ‘what people don’t understand…’ bit bearing in mind that he doesn’t understand that you can pay taxes in Bitcoin in some states and that is likely to expand rather than reduce. The guy is an imbecile. “
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