Novogratz: Bitcoin wins in macroeconomics, but Ethereum is used in financial services
Founder and CEO of Galaxy Investment Partners Mike Novogratz sees bitcoin as digital gold, relegating its other qualities to secondary importance.
“I don’t think Bitcoin will be used as a transactional currency ever within the next five years,” he told Bloomberg. – Bitcoin is used as a store of value. Accordingly, bitcoin as gold, as digital gold, will simply continue to rise. More and more people will want to include it in their portfolios “.
In light of PayPal’s announcement of the imminent addition of cryptocurrency support this week, Novogratz predicts that E * Trade Financial, Visa Inc., Mastercard Inc. will soon follow a similar path. and American Express Co. According to his expectations, merchants cooperating with them can get access to transactions of stablecoins and cryptocurrencies within a year..
“There are no longer any questions whether cryptocurrencies are of interest, whether bitcoin is an asset, or whether the blockchain will become part of the financial infrastructure. The question is not whether it will happen, the question is when it will happen. Each and every company should have its own plan, ”he added..
In another recent interview, also on PayPal news, Novogratz stated: “This is the 30th largest bank in the United States in terms of deposits, and all of a sudden every financial institution is wondering,” Wait, what am I doing? ” If you sit on the board of directors of Morgan Stanley or Goldman Sachs or Bank of America, then you start to wonder how you will join. The coronavirus pandemic, no matter how frightening it may sound, has accelerated the spread of cryptocurrencies in two ways: the macroeconomic story with bitcoin and, perhaps more important, stories with the digitalization of cash, financial services systems that will be predominantly created on Ethereum. “.
Previously, Novogratz’s company invested in ParaFi Capital, which in turn invests in the decentralized finance (DeFi) space.