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Bitcoin [BTC] stays a digital store of value, says Michael Novogratz

Anvita M V



Bitcoin [BTC] stays a digital store of value, says Michael Novogratz
Source: Unsplash

On Wednesday, 19th September, Michael Novogratz, the Founder of Galaxy Digital, spoke about the cryptocurrency market, custodians and the adoption of cryptocurrencies by institutional investors, during an interview with Fox Business.

The discussion shed light on Novogratz’ early years in the cryptocurrency market. The billionaire stated that when he first heard of Bitcoin he thought that the technology was “very cool”.

Novogratz continued to say that the blockchain technology is a need of the hour. According to him, people were frustrated with institutions and central banks as they had decided to implement quantitative easing [QE]. He said that people feared that “there would be the basement of fiat currency.”

Michael Novogratz further added that the blockchain technology paved a new way of creating a digital store of value. He said:

“What I liked about it at that point is that there was a big pile of people that want to live off the grid, and libertarians and people that were sick of the government, and the Chinese were buying. It was global. So to me, I thought it was a great speculative investment.”

Furthermore, Novogratz realized that Bitcoin [BTC] and other cryptocurrencies are not just a speculative investment but also a “revolution”. In his perspective, Bitcoin forms one half of the tech space whereas innovations similar to the Web version 3.0 forms the other half. He believes that the people are going to rebuild the way the internet works in the future.

Novogratz said:

“I think it [Bitcoin] stays a digital store value, you know, currencies need to have stability, and the Dollar, Yen moves plus or minus 10% over years.”

The Founder said that Bitcoin has moved by 60% this year. In his opinion, stability is an important factor that people seek. He further stated that a fixed supply currencies do not work because once it is accepted the price keeps increasing. Mike said he would like to consider it like gold.

Novogratz continued to say that when young people start believing that a digital store of value makes more sense than “a clunky old gold sitting in a safe”, it would be a sign of adoption.

Novogratz stated that many institutional investors have started to participate in the cryptocurrency space. He quoted Bakkt, launched by the New York Stock Exchange parent company, Intercontinental Exchange [ICE], as an example.

He concluded by stating:

“That framework is there, and we’re already seeing institutions like endowments and pension funds make bets, they’re making bets in venture funds, there was a big, very influential endowment that has made a bet in a Bitcoin index ventures fund so you’re starting to see the first people say hey this is a store value.”

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Anvita Mysore Vadiraj is a full-time content writer at AMBCrypto. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies.


Bitcoin’s [BTC] dump may have triggered migration of BTCs worth hundreds of millions




Bitcoin's [BTC] dump may have triggered migration of BTCs worth hundreds of millions
Source: Unsplash

Bitcoin dropped by 3.55% over 3 hours, an approximate drop of $200, causing many altcoins to dip by more than 8%. Although it might be a coincidence, thousands of Bitcoins started to migrate from wallets to exchanges, wallets to wallets, and exchanges to wallets.

Whale Alert, a Twitter user, pointed out the same in his tweets. A total of  25,000 BTC were sent in under 20 minutes, in multiples of 5000 BTC each, in a wallet to wallet transaction. Two of these transfers were initiated from an unknown wallet [3BYv2L9zCFYpvRQXakqkVWa7JyRw6Q9ZAm] to two other unknown wallets [3PWNGS2357TnjRX7FpewqR3e3qsWwpFrJH, 3CAF6ZjtJKaHiJixViXncTRwG3N5ss9vn4].

These 5 transfers were worth approximately $140 million. The third transfer took place from multiple wallets to a single wallet [3HuUiXmKN3beQSoM97kWjK1fesWWJvKvaZ].

Additionally, there were two massive transactions that took place two hours after the drop; the first transaction involved 14,999 BTC, while the second involved 11,000 BTC.

The former transaction was sent from two wallets to a single wallet [3GaB3nRWA1PLc3XQkkbpVtFwYYZEuMxD4i], which is the balance of the wallet. The latter transaction was similar to the one mentioned above, as the transaction originated from two wallets.

Another transaction containing 9,000 BTC was transferred from 357R3FeNmySYeHuRfyhFd6nMwzoLDdjfwV to 3NmHmQte2rP8pS54U3B8LPYQKkpG1pFF69. The sender has approximately 9,412 BTC after the transfer, while the recipient has 9,000 BTC.

All of the above transactions were worth approximately $332 million. The massive BTCs transferred could be due to the recent fall in the price. It can also be speculated that BTC whales were securing their profits earned from the shorts.

A Twitter user @Emperor_YZ commented,

“and who say the fee is high, just 30,360 sat ($1.67)🤔 for a $82.37 million transfer …”

Another user, @Omarin0, commented,

“It would have also been 1.67$ for a 1.67$ transfer. 100% fee. How nice”

@Emperor_YZ replied,

“wrong, you can use LN or other layer 2 apps to do small amount payments 😎 for BTC base layer, network security is always top priority, L2 is super cheap and can settle at base layer later”

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