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David Siegel, Co-founder of the hedge fund, Two Sigma, has recently praised the blockchain technology for its ability to “have genuine applications”. However, he does not see the same promise when it comes to cryptocurrencies, which he is skeptical about.

At the Bloomberg Invest Conference, he stated that he’s unsure as to whether or not the digital assets will “hold value the way people expect they will.” Ultimately, some individuals like Siegel, see cryptos and blockchain technologies as two separate components, with the latter having more chances of exposure.

When he was asked which crypto, if any, he preferred, he replied, “They’re all about equal in my mind.” This comment was made with a hand gesture that indicating how low he has set the bar – implying his distaste for such matters.

This statement comes from an individual who is part of a hedge fund that manages over $52 billion, which emphasizes algorithms and artificial intelligence more than anything else. The firm’s entire team is also relatively knowledgeable, as they are all PhD earners, hence avoiding such a strong stance against cryptos might be concerning to current investors.

The main problem that Siegel has with crypto investments is the motive behind such investors. He believes that, “People are looking for new ways to store value, rather than new ways to invest and create new things.”

During the conference, he continuously boasted the technology involved, as he trusts that “the blockchain will ultimately create new business models.” This has many users siding with his arguments.

Nonetheless, according to PitchBook, cryptocurrency and blockchain-based startups continue to grow, as the once $964 million venture is now worth $1.4 billion as of June 2018.

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