Citadel founder Ken Griffin, one of the most powerful people in finance, has confessed that he was wrong about Bitcoin and is now on a mission to see it become mainstream.
Citadel boss Ken Griffin has admitted being wrong about crypto and Bitcoin. He now believes that the future of cryptocurrency is in 2021.
The well-known billionaire hedge fund manager has been a vocal opponent of cryptocurrency. Griffin seems to have changed his mind and now feels that the crypto space has some value.
Ken Griffin, the founder and CEO of Citadel LLC, has expressed his desire for the American market maker to join the crypto space later this year. Griffin, who has been one of the most outspoken detractors of the crypto business, has now conceded that he was incorrect about the nascent asset class and now believes in its advantages.
The Citadel founder said that markets are at a “highly volatile inflection moment” in an interview with Bloomberg Wealth’s David Rubenstein on the present status of markets in light of recent geopolitical events. When questioned about crypto, Griffin, who had earlier cautioned the younger generation to stay away from digital assets, claiming “there was no need for cryptocurrency,” said to the interviewer:
“It’s reasonable to expect that in the months ahead, you’ll see us developing cryptocurrency markets.”
This is the first time I’ve been wrong on a call.
Griffin went on to say that cryptocurrency has been “one of the great tales in finance in recent years.” Griffin remained suspicious as late as November 2021, stating that people are interested in fresh ideas and that he is concerned “that part of this enthusiasm is misdirected when it comes to cryptocurrencies.” With the asset class’s current market capitalisation of around $2 trillion, Griffin confessed that he was “wrong on this call.” He explained:
“And I’ll be clear; I’ve been in the naysayer camp over that period of time. But the crypto market today has a market capitalization of about $2 trillion in round numbers, which tells you that This is the first time I’ve been wrong on a call..”
Many more companies would be willing to accept bitcoins.
While admitting he still harbored some doubts about some aspects of the industry, Griffin said his company was still keen on entering the crypto space. Prodded further, the Citadel boss opined that he believed Many more companies would be willing to accept bitcoins. in the coming months. He explained:
“I’m still skeptical, but there are hundreds of millions of individuals on the planet today who disagree with me.” To the degree that we’re attempting to assist institutions and investors with portfolio allocation issues, we must seriously consider being a crypto market maker.”
I’m concerned about how this bubble will burst.
Griffin’s current remarks represent a 180-degree shift from his previous stance on cryptocurrency. Griffin likened digital assets to the tulip bulb craze in 2017. The tulip bulb frenzy was a period in the 1600s in Holland when contract prices for bulbs of the newly introduced tulip rose to unbelievable heights. Griffin had begun while Bitcoin was worth $10,000 at the time:
“Bitcoin right now has many of the elements of the tulip bulb mania we saw back hundreds of years ago in Holland […] these bubbles tend to end in tears. And I’m concerned about how this bubble will burst..”
Citadel will begin conducting cryptocurrency trades in the coming months, according to Ken Griffin.
They’ll all give up eventually.
March 1, 2022 — Pomp (@APompliano)
Griffin’s conversion to cryptocurrency has sparked a lot of discussion on social media, especially because Bitcoin just entered the top 15 most valued currencies in the world. Anthony Pompliano, a cryptocurrency influencer and Bitcoin investor, has a Twitter account:
“They’ll all give up eventually.”
