Many digital investors have been predicting an event called ‘Flippening’ in the crypto market. This event postulates that the top coin in the market, Bitcoin, is going to be replaced by Ethereum. Citadel CEO Kenneth Griffin has shared a similar opinion on this matter. Griffin was being interviewed by a media recently when he mentioned Ethereum while talking about cryptocurrencies.
He told the media that Bitcoin and Ethereum in their current state pose significant issues for the investors. Both top coins require a lot of energy for mining operations and transaction approvals due to the proof-of-work consensus model. He was attending The New York Times program called DealBook hosted by Andrew Ross Sorkin.
It is worth noting that Citadel is currently supporting 35 billion USD of AUM. The CEO of Citadel, Griffin, has always identified as a traditional investor in the financial market. However, recently he has spoken up about his stance on the crypto market and its future. He told the media that Bitcoin and Ethereum are the only first-generation blockchain digital ledger technologies.
According to him, issues like a massive carbon footprint, lack of hack security, and slow transaction speed are not negligible. He seems to be bullish on Ethereum tokens for the time being. However, he seems to think that without switching to the proof-of-stake consensus model, Ethereum will not be able to address the problem of inflated transaction fees.
Centralized CBDCs will Challenge Decentralized Crypto Assets
Griffin also commented on the possible launch of CBDCs by centralized institutions. He claimed that the investors in the market are debating about the DeFi and the digital dollar. According to him, only time will tell that if the digital version of the dollar can take over or not. However, some investors counter his opinions by claiming that since Bitcoin and Ethereum are digital coins with a limited supply, they can offer a great utility in the form of a hedge of the value.
On the other hand, another counter opinion on the dethroning of Bitcoin is that digital dollar or any other type of CBDC is going to be heavily centralized and monitored by the government. Furthermore, the CBDCs will not be able to generate the type of yields that the DeFi tokens are offering. It is worth noting that most traditional investors used to dismiss the subject of cryptocurrencies. However, now more and more financial giants are taking note of the broader varieties in this field.