Billionaires support Bitcoin over gold ... but some say Ethereum is even better

Following recent comments from JPMorgan CEO Jamie Dimon that Bitcoin is worthless, two well-known billionaires have come to its defense –...



Following recent comments from JPMorgan CEO Jamie Dimon that Bitcoin is worthless, two well-known billionaires have come to its defense – although both say Ether has even more desirable properties.

In an interview with CNBC’s Squawk Box on October 13, Barry Sternlicht, the co-founder of Starwood Capital Group said that gold was actually “worthless” and that he kept Bitcoin (BTC) because each government of the “western hemisphere” prints endless amounts of money.

Sternlicht is estimated to have a net worth of around $ 4.4 billion and is known for his investments in the real estate market through Starwood Capital Group. The investment company was founded in 1991 and would have has approximately $ 95 billion in assets under management (AUM).

Sternlicht was demand for his take on Jamie Dimon’s reiterated skepticism that BTC is “worthless”.

“Gold is also a bit worthless just like silver, I mean they have industrial uses but they are minor. The reason I own Bitcoin is that the US government and all the governments in there ‘western hemisphere print money until the end of time,’ he said.

Dallas Mavericks owner Mark Cuban, who has a net worth of $ 4.3 billion, echoed similar feelings when he spoke to CNBC Make IT on Wednesday. Cuban said BTC is “better than gold,” before going on to say that he believes Ethereum has the “most benefit” as an investment.

Although he favored BTC over gold, Sternlicht also qualified his support for Bitcoin with praise for Ethereum.

“Bitcoin is a dumb coin, it has no other purpose than a store of value, and it’s incredibly volatile. So Ether, I own some of it, it’s programmable Bitcoin and there is tons of other parts that are built on this system.

“I’ve become very interested in blockchain technology as a whole, and the digital ledger that’s going to change everything, we’re probably up to the task,” he added.

Related: Billionaire Bill Miller pleads for Bitcoin, doubts altcoins

However, not all billionaires are on the crypto train. Larry Fink, President of the the largest asset manager in the world BlackRock ($ 9.4 trillion AUM) said he was “probably more in Jamie Dimon’s camp”.

“I’m not a student of Bitcoin and where it’s going to go, so I can’t tell you if it’s going to $ 80,000 or $ 0. But I think there is a huge role for a digital currency,” did he declare.