I Can’t See the Point of Crypto — Nobody Needs to Own It – Markets and Prices Bitcoin News

Seth Klarman is a multi-billionaire investor who says crypto doesn’t make sense to him. “I don’t think anybody needs to own it. It just seems to me that it could end up very much in tears,” he added.

Seth Klarman discusses Crypto Investing, U.S. Dollar, and Gold

In an interview released by Harvard Business School this week, Seth Klarman, an American hedge fund manager and billionaire investor, shared his thoughts on many topics including gold and cryptocurrency.

Klarman, who is also the chief executive officer and portfolio manager at the Baupost Group in Boston, is co-founder of this hedge fund. The current investment company has $30 billion in assets under its management. Forbes estimates that his net worth is approximately $1.5 billion.

Klarman spoke out on the subject of cryptocurrency:

I can’t see the point of crypto. I feel it has a catnip-like quality to techies.

“The idea that we’re using more energy than the country of Iceland, to mine extra crypto, to solve math problems that don’t need to be solved, seems crazy to me,” he added.

“Why do people need 10 or 50 different cryptocurrencies? I don’t get it,” the billionaire investor continued, emphasizing:

I don’t think anybody needs to own it. I fear it might end up causing a lot of pain.

In contrast, Klarman said: “I’m a fan of gold. I think gold’s valuable in a crisis.”

Baupost Group boss, also spoke out about the U.S. dollars. “The U.S. has had an enormous advantage of the dollar being the world’s reserve currency for a very long time. It’s unlikely to change anytime soon.” he opined.

Noting that “It’s hard to imagine people accepting Chinese currency,” the billionaire also said:

It’s hard to imagine people accepting cryptocurrency. These uncertainties are too numerous.

Klarman is a long-time crypto skeptic. Prior to bitcoin, Klarman compared it trading sardines.

Baupost Group Chief Executive Officer is a strong advocate of value investing. The strategy has been championed and promoted by great investors, such as Benjamin Graham and Warren Buffett. Klarman has been dubbed “the next Warren Buffett” and “the Oracle of Boston.”

Buffett doesn’t see any value in cryptocurrency and bitcoin. He previously said bitcoin was “probably rat poison squared.” In May, he said he wouldn’t pay $25 for all the bitcoin in the world.

Let us know what you think of the Baupost Group CEO Seth Klarman’s comments. Please leave your comments below.

Kevin Helms

Kevin is a graduate of Austrian Economics. He discovered Bitcoin in 2011, and has been an advocate ever since. He is interested in Bitcoin security and open-source software, network effects, and the intersection of cryptography and economics.