Sanaa is a chemistry major and a Blockchain enthusiast. As a science student, her research skills enable her to understand the intricacies of Financial Markets. She believes that Blockchain technology has the potential to revolutionize every industry in the world.
According to Ken Griffin, Bitcoin has no commercial use cases.
The billionaire entrepreneur stated that the mainstream Bitcoin-based perception will gradually be substituted by the Ethereum adoption in the upcoming generation of cryptocurrencies. In his talk on Wednesday, the famous investor asserted that Ethereum-based crypto tokens bring along several additive advantages like high transactions speeds and lower cost per transaction.
While Ethereum is only marginally faster than Bitcoin currently, it will have a noteworthy upgrade in transaction rates and costs when Ethereum 2.0 is completely brought into action.
Citadel, the American multinational hedge fund, and financial services company, operates over $ 40 Billion of capital, which is approximately one-fourth of the total trading volume in the United States stock market. The fifty-three-year-old hedge fund manager has long been known as a crypto skeptic, who has time and again repudiated the need to use crypto tokens- especially Bitcoins. According to him, Bitcoins have no commercial use cases.
However, Griffin was noted acknowledging the wide-ranging use of the blockchain technology, which he thought is a ” powerful way to maintain a decentralized ledger around the world”. Nonetheless, he concluded his argument by saying that most of the problems in the world can be handled without formally indulging in the crypto world. According to him, most of the ideas and visions of people looking for some new creation are wrongly vested in the realm of cryptocurrencies.
He went on to explain several pressing issues of the world that crypto fails to address. These are namely, the risk of fraud, high costs, and energy expenditures.
For Bitcoin, Griffin pointed out that the process of executing transactions is extremely pricey for the currency. At present, the cost of transaction is $4.1 per Bitcoin while the conventional transaction fees for the credit card are around 1.4%-3.5% on common networks like Mastercard, Visa, and American Express.
Turning to the issue of Global Warming, Griffin explained that Bitcoin is more harmful to the planet than all forms of payments in the world put together. The cryptocurrency’s carbon footprint is approximately 90.48 tonnes of Carbon Dioxide. According to the data provided by Bitcoin Energy Consumption Index, every Bitcoin transfer has the equivalent carbon footprint of 2,008,657 Visa transactions.
However, there is another side to this story. While transaction processes take a lot of energy, Bitcoin mining uses the most inexpensive cost forms of energy, like renewable energy and surplus power that would otherwise be lost.