Galaxy Digital CEO Michael Novogratz believes that Bitcoin will dramatically change the financial system, but most altcoins will disappear from the cryptocurrency market in the coming years.
During a live broadcast on CNN, Michael Novogratz urged investors not to pay attention to Bitcoin price fluctuations, and advised them to look at the market with a “wider view”. According to him, speculation and excitement often happen to those things that fundamentally change the way people think and live. Novogratz expressed confidence that decentralized systems will make fundamental changes in financial activities.
The Galaxy Digital CEO noted that the rise in interest in bitcoin stems from the technology behind it. Investors have become interested not only in making a profit from trading – they are betting on bitcoin, because they believe that it can change the way money works. The Galaxy Digital CEO expects the first cryptocurrency to surpass $ 500,000 in ten years.
Besides Bitcoin, there are thousands of other cryptocurrencies with much smaller market caps and a less resilient ecosystem. Novogratz believes that 75% of altcoins will “not live” until the next decade. This is due to both the tightening of supervision over cryptoassets in some countries, and the lack of clear rules for regulating cryptocurrencies.
Regulators still cannot agree on what cryptocurrencies are: currencies, commodities, or securities. Novogratz added that regulating cryptoassets will help the industry grow if governments don’t go to extremes and give developers the freedom to innovate.
Despite the fact that Novogratz is considered a supporter of the first cryptocurrency, a few months ago he stated that Bitcoin is not suitable for payments, since its blockchain is not fast enough to conduct several thousand transactions.
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