According to Galaxy Digital CEO Mike Novogratz, bitcoin is a terrific option and a lifeline for people in countries with terrible economic governance. He anticipates that the cryptocurrency’s price will reach $500,000.“We see an adoption cycle that accelerates going viral everywhere,” he said.
In a couple of interviews this week, Galaxy Digital CEO Mike Novogratz discussed the prognosis for bitcoin and the US dollar.
“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.
The Galaxy Digital executive went on to explain what he meant: “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.
Novogratz elaborated, “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,”
“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 continued.
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.”