Ethereum-Based Crypto Will Replace Bitcoin, Asserts Billionaire Citadel CEO

Citadel CEO Ken Griffin has made some daring predictions concerning the cryptocurrency area and seems to be very bullish on Ethereum at some point overtaking Bitcoin.

Speaking with Andrew Ross Sorkin of The New York Times DealBook on Nov 10, Ken Griffin said that Bitcoin is probably going to get replaced by a superior cryptocurrency akin to Ethereum or one thing operating on it.

Ethereum vs. Bitcoin

The billionaire American hedge fund supervisor, entrepreneur, and investor is just not all that enamored with Bitcoin. He sees no business use circumstances for the world’s hottest crypto asset as a consequence of its giant power footprint, sluggish transaction speeds, and vulnerability to fraud.

According to reports, he believes a next-generation cryptocurrency based mostly on Ethereum will probably displace it. Something with sooner transactions per second, a smaller power footprint, and decrease transaction prices would serve a greater goal.

Ethereum in its present state wouldn’t be a probable candidate as a consequence of its horrendous community charges, excessive power footprint, and sluggish transactions. This is all more likely to change all through the subsequent couple of years although as ETH 2.0 will get rolled out with proof-of-stake and shard chains.

Digital greenback disruption

Griffin thinks {that a} U.S. central financial institution digital forex may in the end disrupt the crypto area.

“I believe we’re all nonetheless making an attempt to grasp if we need to hit this world of decentralized finance and need a fee system that’s low value and efficient, is it going to be solved by the crypto group? Or is it going to be solved by a digital greenback?”

The flaw in that argument is {that a} digital greenback will be unable to supply wherever close to the yields which might be at the moment accessible in DeFi.

Inflation will even see its worth dwindle over time whereas finite provide crypto belongings akin to Bitcoin and soon-to-be Ethereum can be utilized as a hedge towards it. Additionally, any CBDC will probably be extremely centralized, monitored, and managed by the state, and with limits on what individuals can do with it. It is successfully the antithesis of crypto.

Traditional finance execs eyeing crypto  

Either method, the feedback are the most recent from a conventional finance billionaire which demonstrates how far the crypto business has come over the previous couple of years.

It was not way back that these ultra-wealthy buyers and executives had even heard of Ethereum, which has additionally outperformed Bitcoin this 12 months, and now they’re casting opinions on it in interviews.

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