Why does Ken Griffin hate Bitcoin? A self-made-man, Griffin founded Citadel LLC in 1990 and turned it into a $25 billion financial powerhouse, and unlike geriatric dinosaur and fellow Bitcoin hater Warren Buffet, he’s still a young man. So why, with all of this wealth and success, does Ken Griffin never miss an opportunity to publicly slate Bitcoin?
One cannot help but be impressed with Ken Griffin. There are some people who are so sharp, driven and focused, they would be an asset to any corporation or political party they chose to be affiliated with. Ken Griffin is just such a man, and in his case, the company that benefits from his talents is his own – Citadel LLC, one of the world’s largest financial institutions, with assets of $25 billion.
Griffin In Danger Of Joining Warren Buffet In The “Old Farts” Club
At 49, Griffin is still a young man, and the fact that he is recently divorced with a personal fortune of $9 billion makes him one of America’s Most Eligible Bachelors. And yet when it comes to Bitcoin, Griffin’s opinions place him firmly in the “Old Fart” club, currently chaired by 87-year old curmudgeon Warren Buffet, and seconded by his partner in crime, 93-year old Charlie “trading Bitcoin is like trading turds” Munger.
Buffet recently stated that in his opinion, cryptocurrency equaled “rat poison squared”, even though he admits he knows nothing of blockchain technology, and is haunted by the billions he missed out on by failing to invest in two startups named Amazon and Google, two fledgling online companies that he couldn’t see becoming successful.
Crypto Is “A Solution In Search Of A Problem”
This week, Griffith turned up on CNBC’s Squawk Box, and once again delivered a withering put down on cryptocurrency. Interviewed by business journalist Andrew Ross Sorkin, Griffin was asked what was he saying to his portfolio managers who wanted to invest in cryptocurrencies.
Griffin triumphantly replied:
“I don’t have a single portfolio manager [of mine] who has told me we should buy crypto, not a single portfolio manager. I have a hard time finding myself wanting to be in the position of being a liquidity provider to a product that I don’t believe in.”
While that might seem like a good comeback, the most obvious reason why none of his portfolio managers suggested crypto was likely because they wanted to keep their jobs working for an avowed crypto hater.
Griffin also said:
“You have to have US dollars to pay your taxes. You don’t have a choice.”
…seemingly forgetting that there is a world outside of the US, and it is not inconceivable that in some countries such as Switzerland, citizens may soon be able to pay their taxes using Bitcoin, Ethereum or Ripple, or even a government registered crypto.
“People Mistake Bitcoin With Blockchain”
Back in November 2017, as Bitcoin began to close in on its record high valuation of just under $20,000 per BTC, Griffin somewhat patronizingly claimed that people were confusing it with blockchain technology, which in Griffin’s view, has merit.
The reality is that the vast majority of crypto purchasers and investors are more well versed on their chosen currency and its mechanizations than the “Average Joe” who only uses a financial institution when he goes to his bank and cashes his paycheck.
Griffin said he does not consider bitcoin to be a fraud, as some naysayers have said, but he maintained that it is a bubble that will eventually hurt people, and says he worries how the bubble might end.