Legendary Hedge Fund Manager Lambasts Bitcoin

by

Despite Bitcoin‘s remarkable surge, renowned hedge fund manager Cliff Asness continues to express doubts about its value.

In a recent chat with CNBC, Asness opined that cryptocurrency might be more of a ‘bubble’, pointing out that it lacks a practical application.

Speaking as a researcher, I find myself avoiding the shorting of cryptocurrencies due to their pronounced volatility. This is not a choice made lightly, but rather a strategic decision based on the inherent market fluctuations that characterize this asset class.

For quite some time, the wealthy American individual, who is believed to have a fortune valued around $2.1 billion, has expressed doubts about the value and legitimacy of digital currencies like Bitcoin.

Back in 2021, Asness dismissed the idea of following cryptocurrency trends as a quant trader. 

“You know you can trade anything as a trend follower and we have not done this,” he said. 

He expressed a degree of skepticism, suggesting it might be difficult for someone to create an accurate valuation model that determines the correct value of the biggest cryptocurrency.

In a tweet, Asness expressed his observation after the FTX-induced crypto market crash in Q4 2022: “I’m not sure if I mentioned it earlier, but have people noticed that Bitcoin and other crypto assets are essentially high-risk speculative investments? It seems familiar to me. If fictitious money could blush, it would.

According to U.Today’s report, the CEO of JPMorgan, Jamie Dimon, has expressed his unease towards Bitcoin, stating that its primary use seems to be in illicit activities like money laundering.

Although Bitcoin has garnered the support of notable figures like Larry Fink from BlackRock and experienced broader institutional acceptance, it still faces an uphill battle before it can convince more hesitant traditional financiers to fully adopt it.

Read More

2025-01-14 12:58