Mike Novogratz cheerleads cryptocurrencies in his latest interview where he discusses the future evolution of cryptocurrencies.
The past few months have seen several technology companies allocate a small portion of their corporate treasuries into the benchmark cryptocurrency, bitcoin BTC.
Jack Dorsey from Twitter, Michael Saylor from Microstrategy, and Elon Musk from Tesla have all put Bitcoin on their corporate balance sheet.
“Mike Novogratz discusses the future evolution of crypto currencies”
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Mike Novogratz founder of Digital Galaxy believes that Corporates viewing bitcoin as a reserve is an emerging trend and it is the reason why Mike Novogratz cheerleads cryptocurrencies today with conviction
“So, three becomes a movement in general” said Mike Novogratz referring to the three CEOs above moving a portion of their corporate treasuries into bitcoin.
“We did it three years ago when we did it up in Canada” said Mike Novogratz.
The cryptocurrency billionaire has been a long-term crypto bull before cryptocurrencies went mainstream.
Today, Mike Novogratz cheerleads cryptocurrencies, particularly Bitcoin as protection against monetary inflation
“I think you are going to see a movement around corporate treasuries one reason is that the USD continues to be debased, asset prices continue going higher so you are protecting the value of your core treasury” said Mike Novogratz.
“In general, corporate treasuries are short, so you don’t want to be putting all your money in, but in general I think CEOs will put some of the corporate treasuries in Bitcoin” he added.
“in general I think CEOs will put some of the corporate treasuries in Bitcoin”
Cryptocurrencies are a generational thing, which is another string to Mike Novogratz cheerleads cryptocurrencies
“Cryptocurrencies are the currency of choice for Generation Z and young millennials for people in this country so you are almost tone-deaf to say it doesn’t matter it matters to them” said Mike Novogratz.
So, Mike Novogratz cheerleads cryptocurrencies as he cites mass adoption
“Thirty percent of Americans own some piece of cryptocurrencies so it is becoming a negative if you don’t do it” he said.
Mike Novogratz sees Bitcoin as a store of wealth.
“I don’t see bitcoin as transactional, I see it as a digital store of wealth, a digital asset” he said.
“There are other cryptocurrencies that will fight and win in the payment system” he added.
“We are going to move from a world where your money will be moved from a bank account to a wallet on a phone, it is not just Bitcoin, your stocks are going to be there, your tickets to concerts will be there and your money which you use to transact will be there” – Mike Novogratz
But Mike Novogratz also noted that Bitcoin is going to come out with a payment system to dominate these payments.
“We are going to move from a world where your money will be moved from a bank account to a wallet on a phone, it is not just Bitcoin, your stocks are going to be there, your tickets to concerts will be there and your money which you use to transact will be there” said Mike Novogratz.
“That is coming, that is where the big battle will be that is why PayPal got involved. One of most interesting things to watch over the next three years is the fight over payments” he said.
Mike Novogratz cheerleads cryptocurrencies citing the differences between Bitcoin, Ethereum, and Ether
Although he makes no mention about Dogecoin which started as a joke and has freshly minted millionaires going from 0.0020 – 0.4377 in 52 weeks.
“There are no changes to Bitcoin protocol, you know what you get whereas Ethereum is still being built on the fly rapidly at an accelerated pace as more people participate in it” he said. He also thinks it will be the future in 5 to 10 years.
“Bitcoin is building this global decentralized, supercomputer that processes information on this blockchain. So, you think wait a minute the world is going to be built on this, so people put some money on Ethereum” he said.
Ether, on the other hand, will get valued as a network as more people transact on it and are part of either community, said Mike Novogratz. “Adoption of Ether future will happen 10 times faster than the Bitcoin future” he added.
Ether is up 38,814% over the last 5 years measured against USD.
“We are at an early stage of this revolution people are buying it because they have no idea how to value it and they are going to hold it” said Mike Novogratz.
Sounds worrying if you are a fundamental investor.
“We are in a very different place compared with 2017 we had zero institutions participating today we have insurance companies to hedge funds to high net asset individuals all participating” – Mike Novogratz
Mike Novogratz cheerleads cryptocurrencies as he sees driverless banks and insurance companies in the future
He also notes greater risk along the way because the technology is less tried and tested.
But Mike Novogratz notes that cryptocurrencies have evolved since 2017
“We are in a very different place compared with 2017 we had zero institutions participating today we have insurance companies to hedge funds to high net asset individuals all participating” said Mike Novogratz.
So how does Mike Novogratz’s Digital Galaxy spot investment opportunities?
“We like to look for the best young developers’ programs new projects. Trying to put startup capital in the best projects we got a team that tirelessly looks through business plans. We convince them that we are bringing value to their projects because there is lots of capital chancing good projects,” he said. “That is where new investment dollars go” he added.
“In five years, most, people aren’t going to care if it’s a blockchain system they are going to look at the interface and say is it cheaper, faster, more transparent, fairer you are going to win customers over by building a better product” he said.
“All the blockchain stuff is going to be back of the TV who cares how TV is made it looks good” he said. “For a revolution to work consumers aren’t even going to know that they are playing on a blockchain system” he said.
“Terra is a cool example that is making that jump” he added.
Mike Novogratz cheerleads cryptocurrencies and he doesn’t believe the new SEC Chair Gary Gensler will not be instrumental in banning it
“He is progressive so he will go after the rent takers BTC is not a rent taker. I guess that we will get an ETF this year” said Mike Novogratz.
Bitcoin plunged 4% after the Central Bank of Turkey banned the use of cryptocurrencies. Then there was a flash crash of 15% over the weekend over fresh fears of fraud claims.