Crypto: Just Speculation and Crime?

Cliff Asness, a big shot at AQR Capital Management, isn't buying into the crypto hype. He thinks bitcoin is nothing more than a bubble ready to pop. After bitcoin soared past $100, 000 following the November presidential election, Asness is skeptical. He believes crypto is only good for two things: betting on its price (speculation) and illegal activities. Asness isn't seeing any real use for crypto besides these two things. He's not convinced by bitcoin's quick jump in price, which rose 120% in 2024 after a big boost from the presidential election. Investors were hopeful that the new president would make crypto great again with favorable regulations and a national bitcoin reserve. But Asness isn't sold. He thinks crypto's price trends are just that – trends. There's no solid foundation or clear use case for crypto, so he's staying cautious. "Most people following the trends are probably holding onto their crypto, " he said. As for bitcoin's recent dip to around $90, 000? Asness is keeping a close eye, waiting for that bubble to burst.