Bitcoin Critic Questions Its Value Amid Growing Institutional Adoption

Cliff Asness, the co-founder of AQR Capital and a prominent hedge fund manager, remains critical of Bitcoin, labeling it a potential "bubble" with no clear use case.

In a recent CNBC interview, he reiterated his skepticism, though he avoids shorting the cryptocurrency due to its volatility.

Asness, whose net worth exceeds $2 billion, has long questioned Bitcoin’s legitimacy. In 2021, he dismissed integrating Bitcoin into quantitative strategies and doubted the feasibility of creating a reliable valuation model. Following the FTX collapse in 2022, he doubled down, calling Bitcoin and other cryptocurrencies “bubble assets” and “made-up pretend money.”

His views align with other traditional finance critics like JPMorgan CEO Jamie Dimon, who argue Bitcoin’s primary uses are tied to illicit activities. Despite institutional backing from figures like BlackRock’s Larry Fink, Bitcoin still struggles to win over skeptics in traditional finance, signaling an ongoing challenge for broader acceptance.

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Yet, Bitcoin’s supporters point to its increasing adoption by major institutions as evidence of its staying power. With growing integration into traditional financial systems and a rising number of regulated Bitcoin-focused products, proponents argue that skepticism like Asness’s is slowly being outweighed by practical use cases and global demand for decentralized assets. Whether Bitcoin can fully bridge the gap between innovation and skepticism remains a pivotal question for its future.

Alexander Zdravkov