Ken Griffin says Bitcoin will be replaced by Ethereum-based currency
Kenneth Griffin, the billionaire CEO of American hedge firm Citadel, believes that a cryptocurrency based on the Ethereum (ETH) network will overtake Bitcoin (BTC) as the cryptocurrency’s top dog.
Citadel oversees about $40 billion in assets, accounting for almost a quarter of all stock market trading volume in the United States.
Griffin stated at The New York Times’ DealBook event on Wednesday, Nov. 10 that the “Bitcoin-based vision [will be] superseded by the Ethereum-based conception in the next generation of cryptocurrencies.”
He went on to say that Ethereum-based cryptocurrencies had “the advantages of faster transaction speeds [and] cheaper transaction costs.”
Ethereum is now only marginally quicker than Bitcoin, but once Eth2 is completely developed, it will considerably increase transaction speeds and cut costs.
Griffin has long been a critic of cryptocurrency, particularly Bitcoin, which he believes has “no economic use cases.”
Despite the fact that crypto and its underlying blockchain technology is a “very exciting technology” and “a powerful mechanism to maintain a decentralized ledger throughout the world,” he concluded that “it’s actually not the solution that we need” for “most situations.”
“I fear that part of this fervor is misguided when it comes to cryptocurrencies,” he continued, “because people are really focused on a world of new ideas and new creativity.”
During the conference, he stated that “crypto hasn’t solved a lot of challenges,” such as the possibility of fraud, high fees, and energy use.
“Managing payments on Bitcoin is tremendously costly,” he remarked. At the moment, a Bitcoin transaction costs around $4.1. On prominent networks like Mastercard, Visa, and American Express, transaction fees typically vary from 1.4 percent to 3.5 percent. For debit cards, a premium of roughly 0.5 percent is proposed.
Griffin argued that Bitcoin is “a larger contributor to global warming than any form of payment we use throughout the world now in aggregate” in terms of sustainability.
Bitcoin emits approximately 90.48 tonnes of CO2 each year. According to the Bitcoin Energy Consumption Index, each Bitcoin transaction has a carbon footprint of 2,008,657 VISA transactions.
Bitcoin mining, on the other hand, makes use of the most cost-effective energy sources, such as renewable energy and surplus electricity that would otherwise be squandered. Quantifying the number of emissions that banks and financial institutions are accountable for is likewise much more challenging.