David Siegel, co-founder of hedge fund giant Two Sigma, recently stated that he’s “a little skeptical on cryptocurrencies,” as he claims they won’t keep on being as valuable as speculators believe.

During Bloomberg’s Invest Summit, held in New York on June 5, the hedge fund manager stated:

“I guess I’m a little skeptical that [cryptocurrencies] are going to hold value the way that people expect that they will.”

David Siegel

Siegel, who helps his New York-based hedge fund manage $52 billion worth of assets, responded to a question on whether he was fond of any cryptocurrency saying that “they’re all about equal in my mind.” Moreover Siegel, who notably earned a Ph.D. in computer science from the prestigious Massachusetts Institute of Technology (MIT), signaled towards the floor with his palm, implying that cryptocurrencies are worthless.

The data-driven hedge fund manager isn’t the only billionaire investor who’s bearish on Bitcoin and other cryptocurrencies. Notably, Berkshire Hathaway founder and billionaire investor Warren Buffett has referred to cryptos as “rat poison squared.”  Buffett’s business partner and the vice chairman of Berkshire Hathaway Charlie Munger has compared cryptocurrencies to “dementia” and “turds”.

What might make Siegel’s comments stand out is his strong technical background, and his position among the highest earning hedge fund executives. Speaking at the summit, he added:

“You already see certain kinds of assets inflating in price [real estate and cryptocurrencies]. People are looking for new ways to store value, rather than new ways to invest and create new things. I think there’s a little bit too much interest in storing value, and not enough interest in creating new value and expanding the pie.”

David Siegel

Fond of Blockchain Technology

The hedge fund manager noted that the mathematical and cryptographic algorithms used to implement blockchain solutions are “pretty cool.” Acknowledging that blockchain has been overhyped, the Two Sigma co-chairman believes that the immutable, distributed ledger “will ultimately create new business models.”

He further touted the underlying technology that allowed cryptocurrencies to grow as part of the future, saying “I think the blockchain is a really fantastic technology…the blockchain is really going to have genuine applications.” One of the potential uses cases he this technology may have is in aiding developing countries where “registries are not as established,” when compared to more developed nations.