One of the world's largest hedge funds Elliott Management, founded by billionaire Paul Singer in 1977, dedicated three pages to describing its negative view of a cryptocurrencies in a fourth-quarter letter to customers, calling cryptocurrencies "" Business Insider reported Feb. 20.
In the letter Jan. 26 , Elliott claims that people encountering cryptocurrency (19459003) "WTHIT (1949004) to a stable FOMO (fear of missing out). ] "Black box" that will, according to the firm, turn out to be empty.
The firm does not shy away from hyperbole in the letter, insisting that cryptocurrency is the "equivalent of nothing " and that the desire to invest in it is an "Continuing:
" This [cryptocurrency] is not an indication of the limitless ignorance of swaths of the human race just a bubble. It is not just a fraud. It is perhaps the ultimate limit, the ultimate expression, of the ability of humans to seize upon ether and hope to ride it to the stars …
But it is not glorious that when the equivalent of nothing attracts priests What are the prices of the goods, the price of goods, and the price of goods?
Further along in the letter, Elliot expresses skepticism about the scarcity of Bitcoin (BTC). Despite the fact that Bitcoin's supply is capped at 21 million corners, the letter from Elliot argues that the forking of the Bitcoin Blockchain could threaten scarcity, stating: "this limitation [scarcity] is not about as sacrosanct as the bitcoin evangelists would Have you believe. "
According to Business Insider, Elliott managed $ 34.1 bln as of January 1, 2018 and the Elliott Associates LP fund returned 8.7% last year
In 2017 alone, the number of digital currency-based hedge funds grew from 30 to about 130.
Traditional hedge funds, most famously that of American investor Bill Miller, who as of Dec. 2017 held 50 percent of his fund's money in Bitcoin