Indeed, the Chinese government
has already banned crypto transactions, and Pollock expects the Federal Reserve to create a cryptocurrency linked to the US dollar — "an electronic dollar" — that will devalue bitcoin and ethereum.
The Federal Reserve since 2020 has been exploring plans for a digital dollar as more Americans move away from cash. The central bank has not yet committed to launching a digital currency, however, and last month Fed Chair Jerome Powell told Congress that it would be "ideal" if Congress were to make the final call.
Elliott's Pollack said he appreciates what blockchain technology can do and expects it to be widespread across different industries soon enough. But he is concerned investors in the space are not fully accounting for government interference.
Pollack's comments were not as harsh as some by Elliott's founder Singer, who told investors earlier this year that he was exasperated by bitcoin and its investors.
"Deep breathing exercises can work, but only for short periods. We continue to press on for the day when we can say, 'We told you so,'" he wrote.
On Monday, billionaire Citadel founder Ken Griffin, whose flagship fund had a strong September, called crypto a "jihadist call" against the country in a conversation at the Economic Club of Chicago.
"What a crazy concept this is, that we as a country embrace so many bright, young, talented people to come up with a replacement for our reserve currency," he said.
JPMorgan Chase CEO Jamie Dimon had a similar take on the crypto space in an interview over the weekend, telling Axios that "regulators are going to regulate the hell out of it."
"I think it's a little bit of fool's gold," Dimon said.