Head of a hedge fund: Cryptocurrencies have a lot in common with abstractionism

Citadel Securities hedge fund CEO Kenneth Griffin compared cryptocurrencies to abstractionism, the value of which depends on the art connoisseur.

«Why can a painting cost $ 10 000 000? It’s just canvas and oil. It all depends on the value in the eyes of the beholder. We live in a reality that an asset is worth exactly as much as people consider it useful or valuable,» Griffin said.

Previously, Griffin had repeatedly spoken out against digital currencies due to their high volatility and the complex position of regulators in this area. However, his opinion has since changed from extremely negative to moderately positive.

Speaking at an international conference, he said: «I am trying to understand how cryptocurrencies make the world a better place. But more and more often I hear stories that bitcoin consumes an amount of electricity comparable to the energy consumption of small countries.»