Billionaire and US hedge fund CEO Citadel Kenneth Griffin believes that a currency based on the Ethereum network will replace Bitcoin as the king of the crypto kingdom. Citadel manages more than $ 40 billion in capital – a quarter of the volume traded on the US stock exchange.
Kenneth Griffin – CEO of Citadel hedge fund
During the DealBook Summit on November 10th hosted by the New York Times, Griffith to say he predicts that “Bitcoin-based concepts will be replaced by Ethereum-based concepts in the next generation of cryptocurrencies”. In addition, the Ethereum-based cryptocurrency has “the advantage of higher transaction speeds and lower costs”.
Ethereum is only slightly faster than Bitcoin at the moment, but will significantly increase transaction speed and reduce costs if Eth2 is fully provisioned.
Griffin has long been a crypto skeptic, particularly when it comes to Bitcoin, which he says has “no commercial use case at all”.
While he noted that cryptocurrency and the underlying blockchain technology are “a really exciting technology” and “a powerful way to keep a global decentralized ledger,” he said that “for most problems, we really don’t have the solution to need”.
“People are very focused on the world of new ideas and new creativity. I worry that some of that passion is out of place when it comes to cryptocurrencies. “
According to him, “there are a number of problems that cryptocurrencies cannot solve,” including the risk of fraud, high costs and energy consumption.
“Bitcoin payment processing isn’t cheap. It currently costs around $ 4.10 per transaction. Typical credit card transaction fees are between 1.4% and 3.5% on popular networks such as Mastercard, Visa and American Express. The surcharge for debit cards is around 0.5%. “
In terms of sustainability, Griffith believes that Bitcoin “contributed to the warming of the global currency we use today”.
Bitcoin’s annual carbon footprint is around 90.48 tons of CO2. According to the Bitcoin Energy Consumption Index, every Bitcoin transaction has a carbon footprint that corresponds to 2,008,657 VISA transactions.
On the other hand, Bitcoin mining also uses the most cost-effective forms of energy such as renewable energy and excess energy that would otherwise be wasted. It has also become much more difficult to quantify the actual level of emissions for which banks and financial institutions are responsible.
When asked if he was worried about missing the crypto train, Griffith replied:
“I see, in a way, the train is still in the station…. I think it was in the first few minutes of the game. “
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According to Cointelegraph