Galaxy Digital CEO Mike Novogratz says bitcoin is a great alternative and a lifeline to people in countries with poor stewardship of the economy. He expects the price of the cryptocurrency to hit $500K. “We see an adoption cycle that accelerates … going viral everywhere,” he said.
Bitcoin Is a ‘Great Alternative’ in Some Economies
Galaxy Digital CEO Mike Novogratz talked about the outlook for bitcoin and the U.S. dollar in a couple of interviews this week.
“The biggest thing that’s happened in the last 10 years in lots of ways, maybe longer, is when Europe and the U.S. said: ‘Hey Russia, those reserves that you thought were yours, they’re not really your reserves,’” he told Bloomberg Tuesday.
Elaborating on what he meant, the Galaxy Digital executive detailed
It means the dollar or treasuries as a risk-free asset isn’t so risk free. It’s not risk free if you’re Russian and maybe if you’re Chinese, it might not be risk free either.
“So I think we are entering a world that’s unknown where people are going to struggle to figure out what is the reserve currency,” he opined.
“The U.S. isn’t going away. The dollar isn’t going away. But it’s not going to be the sole place. So I think you are going to see this hodgepodge of assets,” Novogratz described.
“Gold and, certainly, digital assets are going to be part of that bucket. The whole world is not going to flip to bitcoin overnight but you are going to see more and more people say: ‘I wanna have some of my money outside of the sovereign,’” he explained.
Noting that “The Russian ruble has depreciated over 90% in the last 10 years” and “The Turkish lira did the same,” Novogratz said:
Bitcoin is a lifeline to people in countries with really poor stewardship of the economy.
He similarly told CNBC Thursday: “When there’s bad stewardship of economies … bitcoin provides a great alternative.”
While admitting, “our stewardship has not been great,” the executive stressed: “If you were in Russia, you would feel pretty stupid having all of your money in rubles. Or if you were in Turkey, you’d feel pretty stupid having all your money in the Turkish lira.”
Bitcoin Could Hit $500,000
The Galaxy Digital boss was asked about his price prediction for bitcoin. He replied:
Five years out, if bitcoin is not at $500,000 then I’m wrong on the adoption cycle.
“We see an adoption cycle that accelerates. Bitcoin grew so much faster last year, crypto grew, than the internet did its best years in the 90s. I see this going viral everywhere,” he shared.
Novogratz also commented on the executive order on the regulation of cryptocurrency signed by President Joe Biden last week. He noted: “The politics have shifted even on the Democratic side. It’s no longer anti-crypto, it’s like: ‘Hold on, there’re a lot of crypto voters.’”