Citadel's Kenneth Griffin thinks that Bitcoin (CRYPTO: BTC) will be replaced by Ethereum (CRYPTO: ETH) and the “next generation” of cryptocurrencies.
What Happened: In an interview with DealBook’s Andrew Sorkin, Griffin stated he was still skeptical of any “solid commercial use cases” for a cryptocurrency such as Bitcoin.
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“I think we’re going to see Bitcoin be replaced conceptually by the Ethereums, replaced conceptually by the next generation cryptocurrencies that will have the benefits of higher transaction speeds, lower cost per transaction,” said Griffin.
Griffin said he wasn’t worried that he “missed the train” on Bitcoin because he believes that the train is, in some sense, “still in the station.”
“I think we’re still trying to understand if we want to hit this world of decentralized finance. And we want a payment system that’s going to be low cost and effective. Is it going to be solved by the crypto community or is it going to be solved, for example, by a digital dollar?” he stated.
According to a CoinShares survey of fund managers conducted last month, Ethereum emerged as the asset of choice for the majority of those allocating towards cryptocurrencies in investment portfolios.
More recently, trading volume for Ethereum outpaced Bitcoin for both retail and institutional investors on Coinbase Global Inc (NASDAQ:COIN).
Price Action: At publication Thursday morning, Bitcoin was trading at $64,784.32, down 5.40% in the last 24 hours. Ethereum was trading at $4,724.95, down 2.64% over the same period.
Photo: Thought Catalog on Unsplash