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.
“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.”
Subscribe to AMBCrypto’s Newsletter