Citadel CEO Says Bitcoin Still A "Head Scratcher" But Billionaire Lasry Sees $40,000 Soon

Ken Griffin, the CEO and founder of the Citadel hedge fund, has reiterated his negative stance on Bitcoin (BTC) in an interview with CNBC this morning.

Speaking at the Delivering Alpha Conference in New York, CoinTelegraph's Helen Partz reports that Griffin admitted that he “still scratch[es] [his] head" about Bitcoin, claiming that the younger generation should “do something more productive than invest in digital currencies.”

image courtesy of CoinTelegraph

To prove his point of view, the billionaire pointed out that none of his clients have ever suggested investing in cryptocurrencies:

"I don’t have a single portfolio manager who has told me we should buy crypto, not a single portfolio manager.”

Griffin further declared that his company is having a “hard time” deciding whether it should be a liquidity provider for a product that he “[does not] believe in,” adding

“There’s no need for cryptocurrencies. They’re a solution in search of a problem.”

In late 2017, Citadel’s Griffin had made a similar statement about Bitcoin, comparing the top cryptocurrency with the “Dutch tulip bulb mania” in the 1600s and noting that “these bubbles tend to end in tears. And I worry about how this bubble might end."

Founded by Griffin in 1990, the Citadel hedge fund manages over $30 billion of assets. The global financial institution is one of the oldest hedge funds in the world, being only one of three percentof hedge funds that have been working for more than 20 years.

Others on Wall Street have embraced cryptocurrencies in their turn. Earlier this week, the world’s largest largest asset manager BlackRock announced it is setting up a working group to estimate the benefits of involvement in Bitcoin, a turn away from the company’s previous critical stance on cryptocurrency.

And last week, billionaire Steven Cohen’s Point72 Asset Management hedge fund reportedly invested in the Autonomous Partners crypto and blockchain-focused hedge fund.

And, as CoinTelegraph's William Suberg notes, Avenue Capital Group co-founder Marc Lasry has said that Bitcoin’s (BTC) price is going to hit $40,000 in bullish comments to CNBC this morning.

Marc Lasry: I'm personally invested around 1% in bitcoin from CNBC.

Speaking in an interview for the network’s Squawk Box segment, Lasry, whose debt management firm controls around $9.6 billion of assets, saw increasing ease of crypto trading as a major motivator for Bitcoin to rise, noting

“As it gets more into the mainstream, and as more markets end up allowing it to trade where it's freely tradable, to me that's more of the bet.”

Lasry added that he foresaw Bitcoin investors “making 5 to 10 times their money in 3 to 5 years.”

Lasry had previously expressed regret at not purchasing Bitcoin sooner, with reports this week alleging that he had since converted one percent of his net worth to the largest cryptocurrency.

Lasry added in the CNBC interview that the reason he likes Bitcoin is “because it’s the one everybody is going to come to.”

Lasry’s prediction came amid a rapid uptick in Bitcoin’s fortunes, with the coin suddenly rising up to 12 percent July 17 and maintaining new levels above $7,400 since.

Institutional investors have become a significant talking point in recent weeks regarding Bitcoin, with commentators eyeing movement towards the crypto sphere from the likes of investment giant BlackRock as a possible sign major new interest is on the way.

At $40,000, Lasry’s prediction is meanwhile conservative in nature compared to figures like those proposed by Tim Draper, whose 2022 Bitcoin price forecast is currently set at $250,000.

Controversial crypto personality John McAfee, infamously bullish, has meanwhile doubled down on Bitcoin hitting the $1 million price point hitting as soon as 2020.

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For now, Bitcoin is up over 20% this week - its best week since December 2017.


Arnold Yellow_Snow Wed, 07/18/2018 - 15:10 Permalink

"...Griffin admitted that he “still scratch[es] [his] head" about Bitcoin, claiming that the younger generation should “do something more productive than invest in digital currencies.”

Dope Farmer.

Goggle, Faceplant, and Amazonia have the market for farming dopes wrapped up already, but niche franchises are still available..

In reply to by Yellow_Snow

Kafir Goyim Yukon Cornholius Wed, 07/18/2018 - 16:26 Permalink

These darned kids with their crypto.  We desperately need them to be designing more advertising and online tracking.  They could be using those computer skills to track buying habits, voting patterns, and help insurance companies avoid insuring money losing clients.  Such a waste for them to spend that talent on crypto tulips when Visa and Mastercard already provide all the payment options anybody would ever need for a reasonable monthly fee + 3% of gross sales.

In reply to by Yukon Cornholius

Kafir Goyim PhysicalRealm Wed, 07/18/2018 - 17:12 Permalink

Gold and silver are only worth money as long as there's a greater fool who think they're worth money.  They no longer have as much intrinsic value as they used to.

Gold and Silver (and gems) used to be the only game in town when you wanted something shiny to wave in front of women.  Now with plastic and glass and stainless steel, those women can glitter for free.

Sure, you can use silver in electronics for it's high conductivity, but you don't need to.  You can design with copper and just limit your current, which you should be doing anyway for battery life, etc.  You can use gold in electronics for it's corrosion resistance, but you no longer need to.  Products are generally designed for two years of life now anyway, and they are also often waterproof, so corrosion resistant contacts are not as important as they were 20 years ago.  The properties that made Gold and Silver valuable in electronics are still relevant, but they are becoming steadily less so.  Believe me, if Gold goes to $2500 an ounce, nobody will be using Gold (or silver if it's price follows) in electronics anymore.

Bitcoin (and it's cousins) provide the ability to transact trustlessly and irreversibly with no 3rd party involvement, just like cash does, but electronically.  That's not something that credit cards provide.  So I would say Bitcoin (and it's cousins) are more likely to continue to be used in the future than gold and silver are.

In reply to by PhysicalRealm

Jdillinger PhysicalRealm Wed, 07/18/2018 - 18:09 Permalink

Do you own Windows? Are you typing on a typewriter or a machine with some sort of OS? Are you using a browser.  What's worth more than intellectual properties. You can't see the basis of value because you are to obtuse to understand software has as much or more value than any other commodity. 

Cryptos are more than just a measure of value, they are fully functioning software packages that perform services and acquire value by accomplishing particular tasks.  Let see you do that with a dollar... Isn't that just paper based on faith and credit?  Fool, your vision is so skewed you don't even understand what's right in front of you.


Bitcoin is the Hello2 that eventually became Windows.  

In reply to by PhysicalRealm

rphb USisCorrupt Wed, 07/18/2018 - 17:01 Permalink

And then there are these who sees the chains behind the cryptoes, and the eyes, the ever watchful eyes.

And these of us that sees, that really sees, understand that Bitcoin is a devils bargin, that offers only false promises. I could tell you in length, but I am sure ye don't understand, Bittards never do.

In reply to by USisCorrupt

DivisionBell Wed, 07/18/2018 - 14:54 Permalink

“There’s no need for cryptocurrencies. They’re a solution in search of a problem.”

The Problem was/is QE.  Central banking cartel fiat policy birthed Bitcoin.



Kafir Goyim SadhakaPadma Wed, 07/18/2018 - 17:39 Permalink

You're both wrong.  Electricity was known before Franklin and his kite.

Edison was a proponent of DC transmission of electricity.  Tesla was a proponent of AC transmission.  Tesla won.  Neither of them discovered it.  Although Tesla's idea of AC was pretty radical, since everybody else was just futzing around with DC that came from batteries.  Definitely a man who massively moved the needle of progress.

In reply to by SadhakaPadma

_SILENCER Wed, 07/18/2018 - 14:59 Permalink

At one point, lamplighters were threatened by light bulbs.

Same thing here. The old system will be replaced, and us plebes have an opportunity now to invest/embrace the technology before our masters claim it for themselves attempt to dominate us with it.

Why else the six month crypto crush after that nutzo 2017 fourth quarter? They're scooping it up for dirt.

I'd rather be prepared for the new system instead of being forced or dragged into it.

Keep your metals and cryptos close.

Can't stop the signal.