Mike Novogratz: Bitcoin is not suitable for payments

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The founder of the crypto bank Galaxy Digital, Mike Novogratz, stated in the Exchanges at Goldman Sachs podcast that Bitcoin will not become a payment instrument, since its blockchain is not suitable for this.

According to the billionaire, digital gold will be used as a store of value and an investment asset.

 

“Bitcoin is not suitable for payments. The system is really not adapted for this. It is not fast enough for thousands and thousands of transactions, ”he explained.

 

Novogratz stressed that savings instruments are “social constructs”, and bitcoin is the most widespread of them after the US dollar. According to him, this is the investment attractiveness of the first cryptocurrency.

 

“It [биткоин] has value because we believe in it. There has never been a more successful community brand in 12 years, ”added the investor.

 

The billionaire noted that the current macroeconomic situation seems to be “specially created” for the ownership of digital gold – this is facilitated by the support measures taken by the authorities of various states.

At the Bitcoin 2021 conference, Novogratz said he was “extremely optimistic” about the institutional adoption of the first cryptocurrency.

 

“We have convinced the world that Bitcoin is a great alternative to gold. It is a savings tool that can be used in any country to hedge the risks of fiat. Patience is the path to success. Revolutions don’t happen overnight. Our work will not be completed until every person on Earth has a bitcoin wallet, ”he said.

 

In March 2021, the billionaire announced that the capitalization of the first cryptocurrency would inevitably reach and exceed that of gold. He also found the previous $ 60,000 price forecast for Bitcoin to be too conservative.

Earlier, the executive chairman of Mastercard, Anne Cairns, stated that bitcoin does not behave like a payment instrument – it is extremely volatile and takes too long to complete the transaction. In her opinion, as an asset class, the first cryptocurrency is closer to gold.

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