Cliff Asness, co-founder of AQR Capital Management, calls Bitcoin a speculative bubble and remains skeptical of its long-term value because he believes that Bitcoin has no clear practical use other than speculation and illegal activities.
Asness said on CNBC's Money Movers: "I'm on the bubble side, and from the network, to get me out of this view, you really need not a price change, but a use case. This can convince me that when I find any use for it other than speculation and crime, I may be more inclined to cryptocurrency."
He believes that there are three main functions of cryptocurrency: speculative trading, use in war-torn areas, and paying network ransoms. Although he is bearish on Bitcoin, he admits that there are challenges in shorting, citing Bitcoin's extreme volatility and the risks of concentrated shorting.