Citadel’s CEO Kenneth Griffin, a billionaire American hedge fund manager, believes that a cryptocurrency on Ethereum (ETH), will take over Bitcoin (BTC). Citadel manages more than $40 billion in capital, which is a quarter the US stock exchange trading volume.
Griffith stated that he expects the “Bitcoin based conception [will] be] replaced by an Ethereum-based conception in this next generation of cryptocurrency.”
He said that Ethereum-based cryptocurrency has “the benefits of faster transaction speeds [and] lower costs per transaction.”
Ethereum is slightly slower than Bitcoin, but it will dramatically increase transaction speeds and lower costs once Eth2 is fully implemented.
Griffin is a crypto skeptic who has been around for a while, especially Bitcoin. He claims that there are no commercial uses of Bitcoin.
He acknowledged that crypto and its underlying Blockchain technology are “really intriguing technology” but that it was not the solution to most problems.
He said that people are focused on the world of new ideas and creation. However, he expressed concern about some of this passion when it comes to cryptocurrency.
He claimed during the summit that crypto has not addressed a “number of issues” including fraud and high energy costs.
He said that Bitcoin is extremely expensive to pay for. The current cost of a Bitcoin transaction is $4.1 On popular networks like Mastercard, Visa, and American Express, the typical credit card transaction fee is between 1.4% and 3.5%. For debit cards, the recommended surcharge is 0.5%.
Griffith stated that Bitcoin was “a greater contributor to global warming” than any other form of payment used around the globe today.
The annual carbon footprint of Bitcoin is approximately 90.48 tonnes. According to the Bitcoin Energy Consumption Index, each Bitcoin transaction leaves an equivalent carbon footprint as 2,008,657 VISA transactions.
Bitcoin mining, on the other hand, uses the most cost-effective forms of energy such as renewable energy or surplus power that would otherwise go to waste. It is much more difficult to quantify the emissions banks and financial institutions cause.
Related: Ken Griffin, a billionaire, calls crypto a jihadist call against the greenback
When asked if it was possible that he might have missed the crypto train, he replied: “I think the train is still in the station …..” It’s still very early innings, I believe.”
Rumours circulated earlier this year that Citadel was responsible for the trading restrictions placed on Robinhood’s Gamestock shares. Citadel denied any involvement in the scandal during the summit and called it a “bad comedy gag.”