The billionaire founder of Citadel Securities, Ken Griffin has compared cryptocurrency to abstract art, opining that the value of both is derived from the eye of the beholder.
Griffin, who is valued at around $26 billion according to Forbes, has made numerous comments against cryptocurrencies and urged others to stay away from them in the past, but appears to have gradually softened his stance over time.. He has also said that Citadel will venture into space when it can do so in a respectful way.
Speaking about the value of cryptocurrencies at the Milken Institute Global Conference in Los Angeles on Tuesday, Griffin drew comparisons to his collection of “American abstract art.”“, noting that:
“Why is a painting worth $10 million? It’s oil on canvas. So the value is in the eyes of the beholder.”
While he may never become a full-fledged supporter, Griffin appears to be at least happy to sit on the fence on a personal level as his market-making company works to roll out cryptocurrency services.
In that sense, too he noted that “increased institutional interest in cryptocurrencies” helped influence the firm’s decision and can see it providing “liquidity for institutional investors, and potentially retail ones.”
“I have to live with the reality that an asset is worth what people perceive it to be worth.”
As for Citadel’s views on crypto, Griffin said it was a “huge topic of discussion.” and suggested that it is the younger part of his colleagues who are pushing for the company to enter the space:
“All my colleagues, who are younger than me, probably think that I am a dinosaur on this subject. They are great believers. They believe that cryptocurrencies have an important role in the global economy as a means of facilitating payments in a web3 world.”
Even so, Griffin stressed that the company will take its time to conduct due diligence before making any official moves, as it paid particular attention to the perceived threat from North Korea.
Griffin, in general, has held very skeptical views towards the cryptocurrency sector, going so far as to describe bitcoin (BTC) as a “jihadi appeal” against the US dollar in October.
However, also he noted that he sees blockchain as a “really interesting technology,” despite not seeing its value, and argued that Ethereum-based tokens could one day replace BTC as the best in the crypto space.
In March, he even admitted that it was a mistake to be in the “camp of naysayers” given that the total market capitalization of cryptocurrencies was about $2 trillion at the time. In addition, he noted that Citadel could soon enter the sector.
Despite his relatively neutral comments on this latest occasion, the billionaire managed to include a criticism of cryptocurrencies. Griffin argued that it is easy for him to see how firms like Amazon and Apple have been able to benefit the user with their services and products, but he cannot say the same for Bitcoin.
“These are companies that have clearly changed the world for the better. I’m still looking for that story of how cryptocurrencies have made the world so much better. What I have found are stories about how bitcoin consumes as much energy as a small country,” he said.
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