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Billionaire investor Paul Singer called cryptocurrencies as “one of the most brilliant scams in history” in his latest quarterly letter to clients.

Singer is the founder of Elliott Management, one of the largest hedge funds worldwide. His firm has $34 billion assets under management as of January 1, 2018.

In his fourth-quarter letter to clients, Singer dedicated three pages attacking cryptocurrencies. Singer has long been a critic of digital currencies such as bitcoin, which became popular among investors.

Singer compares cryptocurrencies to an empty black box

According to Singer,  “Cryptocurrencies are nothing except the marketing power of inventors, financiers and others who love the idea of buying a black box (which is obviously empty) for the price of a Kia and dreaming that it will turn into a Mercedes. There have been times recently when this dream has materialized within hours. This is not just a bubble. It is not just a fraud. It is perhaps the outer limit, the ultimate expression, of the ability of humans to seize upon ether and hope to ride it to the stars."

Bitcoin and some other cryptocurrencies have surged in prices to a surprising level. However, these digital assets are proven highly-volatile and risky given the huge sell-offs over the past few weeks. Regulators worldwide intensified their crackdown on cryptocurrencies.

In 2014, Singer rejected the argument of bitcoin advocates that the cryptocurrency will eventually replace gold. He emphasized that “bitcoin will stand the test of time. Governments will protect the value of government-created money.” He also pointed out that “gold stood the test of thousands of years as store of value and medium of exchange.”

Investing in cryptocurrencies is an indication of limitless ignorance

In his 4Q letter, Singer also stated that those encountering a cryptocurrency switched from a sense of WTHIT (What the hell is this?) to a stable FOMO (fear or missing out).

Furthermore, the billionaire investor rejected that perception that bitcoin is scarce. He described the idea “misguided.” He explained that forking…have created an increase in supply and a dilution… of the value proposition for cryptocurrencies."

Moreover, Singer stressed that people’s desire to invest in cryptocurrencies is an “indication of limitless ignorance of the swaths of human race.

According to him, cryptocurrencies are equivalent to nothing yet “attracts priests and parishioners who run up the price.” Mobs are willing to buy it at higher prices, which is “seen as validation of the thing”

Business Insider obtained a copy of Singer’s fourth quarter letter and reported his negative perception about cryptocurrencies.