Investment giant Blackstone’s CEO dismisses bitcoin, saying not going to own any
September 18, 2019, 3:00AM EDT
1 min read
Stephen Schwarzman, the CEO, chairman and co-founder of investment giant Blackstone Group Inc., is not a fan of bitcoin (BTC).
“I don’t have much interest in that because it’s hard for me to understand,” Schwarzman, who leads the firm with over $500 billion of assets under management, told Fortune in an interview published Tuesday. He added that he is not going to own any bitcoin.
Schwarzman believes that government-issued currencies are safer as these “control bad behavior” and ensure that the economy is “as insulated as it can be from excesses.”
Cryptocurrencies, on the other hand, only encourage criminal activities, according to Schwarzman. “The idea that you can transact without anybody knowing anything, you could have a lot of criminal behavior — dirty money, drug money — running all over the world. It only encourages that kind of activity,” he said.
Schwarzman, however, admits that he may be a “limited thinker,” and that if cryptocurrencies can solve the issue of criminal activities, then “it might be OK.”
While Schwarzman has dismissed bitcoin, he is in favor of the underlying blockchain technology. “That is clearly a good thing,” he said, adding that Blackstone could invest in companies using blockchain.
Today the always-on demands of online markets have to be matched with the ability to access opportunities instantly and with no limits. Historically correspondent banks would move large sums of money for those needing to transfer funds while creating bottlenecks of unnecessary friction.
Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
In this episode of The Scoop, StarkWare Co-Founders Uri Kolodny and Eli Ben-Sasson walk through StarkWare's recent fundraise and discuss how their firm is bringing affordable blockchain transactions to the masses.