Galaxy Digital Founder Believes That Bitcoin Is “Going To Be Digital Gold”
Mike Novogratz is known for his former work on Wall Street with Goldman Sachs, but he has since made a name for himself in the cryptocurrency industry with the crypto merchant bank Galaxy Digital. Recently, he sat down with Bloomberg TV for an interview, during which time he spoke on the spread of crypto assets and how Bitcoin remains the top coin.
The interviewer started off with commenting that “it was carnage” in cryptocurrency, asking if the industry is in the “birthplace of recovery in crypto.” That opened the door to talk about exactly how government decisions and the lack of institutional investors have truly been the hold-up.
As the attention turned to the crypto winter, Novogratz commented that this whole year has been an example of “just how painful popped bubbles can be.” Considering how the retail sector has settled down and the inflation of crypto values has balanced out, the industry is likely to go from “a people’s revolution to an institution-led one.”
Discussing the way that crypto assets have evolved, Novogratz acknowledged that there are many altcoins that have tried to go head-to-head with Bitcoin as a store of value. He added,
“There are 118 elements on the periodic table, and only one gold […] Bitcoin is going to be digital gold, a place where you have sovereign money, it’s not U.S. money, it’s not Chinese money, it’s sovereign. Sovereignty costs a lot, it should.”
Even though there was not a discussion on why Bitcoin has been able to take the center stage, Novogratz said that all cryptocurrencies do not need the use of blockchain to thrive. From a security standpoint, cryptocurrencies without the same value and traditional roles could help to offer gains.
Bitcoin, for now, is holding steady between $3,400 to $3,600, though Novogratz believes that this is presently the bottom, leaving plenty of room to increase. He said that the most realistic and achievable medium-term price point is $8,000, adding, “We’re not going to bubble back up.”
The structure necessary to welcome and entice institutional investors into the space is finally coming to fruition, Novogratz adds. Even though the government shutdown slowed it down, the solutions being offered from major companies like the New York Stock Exchange and Fidelity show that the increase of institutional investors “is just getting started,” he said.
Even though traditional institutions are starting to get involved with the crypto industry, existing exchanges and services are bringing custody solutions to the table as well. Big Four auditor KPMG also seems to agree with the stance of Novogratz, saying that institutionalization is “a necessary next step for crypto to create trust and scale.”