Bitcoin is set to lose its leading position in the crypto space, with a currency built on the Ethereum blockchain taking its place. This forecast was given by Citadel founder and CEO Ken Griffin during the online DealBook conference.
The head of the $43 billion asset-management firm noted that he sees no commercial use cases for the first cryptocurrency. In his view, the main drawbacks of Bitcoin are environmental impact, slow transaction speeds, and fraud risks.
“Bitcoin is incredibly expensive to operate for payments,” the billionaire said.
The blockchain technology underpinning the cryptocurrency Griffin called “very interesting”.
“A compelling way to maintain a decentralised ledger worldwide, but this is not a solution to most problems,” he added.
Griffin expects that “the next generation of cryptocurrencies will be based on Ethereum.”
According to him, these assets offer faster and cheaper transactions. However, he is not sure that cryptocurrencies will become the basis for a low-cost, efficient payments system in the future.
The billionaire believes he has not missed the crypto train, as it’s still essentially at the station.
“I think these are still very early opportunities,” he said.
Earlier, Citadel’s CEO said that the company would not support cryptocurrencies until they are properly regulated.
Earlier, Galaxy Digital CEO Mike Novogratz believes that Bitcoin will never become a payment instrument, because its blockchain is not suited for this.
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