Bitcoin will lose its leading position in the crypto space and will be replaced by a currency based on the Ethereum blockchain, as forecasted by the founder and CEO of the investment company Citadel Kenneth C. Griffin during the online conference DealBook.
The head of the $43 billion asset manager has noted he does not see commercial use cases for the leading crypto. In his opinion, the main disadvantages of Bitcoin are its environmental impact, its low transaction processing speed and the risks of fraud associated with it. He said:
“Bitcoin is incredibly expensive in managing payments.”
Griffin called the blockchain tech underlying the cryptocurrency “very interesting.” He added:
“A compelling way to maintain a decentralized ledger globally, but that is not the solution to most problems.”
Griffin expects “the Ethereum-based concept will replace the Bitcoin concept in the next generation of cryptocurrencies.”
These assets have the advantages of faster and cheaper transactions, he said. However, he is not sure if cryptos will be the backbone of a low-cost and efficient payment system in the future.
The billionaire believes he was not late for the “crypto train,” since “in a sense, he is still at the station.” He said:
“I think these are still very early opportunities.”