Kenneth Griffin, billionaire CEO of US hedge fund Citadel, believes that the Ethereum networked currency will replace Bitcoin (BTC) as the world’s No. 1 cryptocurrency. Citadel manages more than $40 billion in capital – a quarter of the volume traded on a U.S. exchange.
At the DealBook Summit on Nov. 10, hosted by The New York Times, Griffin said he anticipates that “the Bitcoin-based concept will be replaced by the Ethereum-based concept in the next generation of cryptocurrencies.”
He added that Ethereum-based cryptocurrencies have “the benefits of higher transaction speeds and lower transaction cost.”
Currently, Ethereum is only slightly faster than Bitcoin, but will significantly increase transaction speeds and lower costs when Ethereum 2.0 is fully implemented.
Griffin is a longtime skeptic of cryptocurrencies, especially Bitcoin, which he says “has no commercial application.”
He said at the summit that “there are a number of problems that cryptocurrencies have not solved,” including the risk of fraud, high costs and energy expenses.
“Bitcoin is extremely expensive to manage payments,” – he said. It currently costs about $4.1 per Bitcoin transaction. Typical credit card transaction fees range from 1.4% to 3.5% on popular networks such as Mastercard, Visa and American Express. The recommended surcharge cost for debit cards is around 0.5%.
In terms of sustainability, Griffin claimed that Bitcoin is “a bigger contributor to global warming than any form of payment we currently use around the world combined.”
Bitcoin’s annual carbon footprint is approximately 90.48 tons of CO2. Each Bitcoin transaction has an equivalent carbon footprint of 2,008,657 Visa transactions, according to the Bitcoin Energy Consumption Index.
On the other hand, Bitcoin mining also uses the cheapest forms of energy, such as renewable energy and excess power, that would otherwise be wasted. It is also much more difficult to actually quantify the emissions that banks and financial institutions are responsible for.
Asked if he was concerned that he may have already missed the crypto train, he said: “I think the train is in a sense still at the station…. I think it’s still very much in the early rounds.
15-11-2021, Mr Advice TEAM