It was just recently when Elliott Management proceeded to give its perspective regarding cryptocurrencies. According to the $34 billion hedge fund, cryptocurrencies were a form of scam that people around the globe needed to be enlightened about. He went further to describe it as one of the biggest scams ever witnessed in history.
Billionaire Paul Singer is the founder of Elliott Management and the acronym he uses to give a description of the folly that usually surrounds cryptocurrencies – WTHIT, or what the hell is this? has been capturing headlines in a major way.
FOMO is the acronym for fear of missing out and reports indicate that it trumped WTHIT and Elliott believes that sooner than later people around the globe will realize that cryptocurrencies is one of the most luring scams in history.
Reports indicate that the fund dedicated managed to dedicate almost three pages towards the coverage of what it deems to be issues that need to be addressed with cryptocurrencies. The controversial letter spoke quite elaborately on the current state of affairs. It recognized that humans are quick at laughing off most of the primitive tribes which at some point in history used big stones as some form of currency.
There is nothing wrong with anyone laughing at that but what we all need to put at the back of our mind is the fact that Cryptocurrencies are nothing more than a form of marketing power for quite a significant number of the financiers and inventors who are relishing the thought of purchasing a black box which is definitely empty but they expect that at one point in time it will be transformed into a Mercedes.
Of course there have been times when the dream materialized in a matter of hours. No one should observe this merely as a bubble. And also no one should wish it away as a form of common fraud.
A person familiar with the matter opined, “This is not the first instance Elliott has criticized cryptocurrencies; the firm raised concerns in a 2013 client letter. However the value of cryptocurrencies has surged since then, with some volatility surfacing earlier this year.”