Galaxy Digital CEO Mike Novogratz believes Ethereum has a better chance of becoming a currency than Bitcoin as ETH is used to trade NFTs.
Galaxy Digital CEO Mike Novogratz in an interview with CNBC
declaredthat bitcoin is not suitable for use as a currency, unlike other crypto assets such as ether, which already serves as a medium of exchange.
“I do not think that [биткоин] will become a currency. I think it will be a store of value. Ether is already being traded as a currency, right. It is the currency of culture. When people buy NFTs, they ask, “How much Ether does this cost?” he said.
Novogratz believes that high inflation and the depreciation of fiat currencies will encourage Bitcoin adoption.
“People are joining the bitcoin community. There are more people who own bitcoins than people in Russia. It is the eighth largest country in the world in terms of the number of bitcoin holders. They volunteered to join the community and declared: “We believe in the spirit of this community.” Bitcoin is a reliable way to store our wealth. And I think that this will gain momentum as trust continues to erode,” said the head of Galaxy Digital.
The billionaire said that Americans would give up bitcoin only if the US authorities could improve the economic situation. According to him, this will only happen if Federal Reserve Chairman Jerome Powell and US Treasury Secretary Janet Yellen are able to return inflation to 2% and the US national debt, in which case Americans will not have to buy bitcoin.
In the case when the economy is unmanageable, bitcoin is an excellent alternative to simply storing your money. He noted that this also applies to countries such as Russia and Turkey, whose inflation has accelerated to unimaginable speeds. In less than a month, the Russian ruble has fallen 40% against the US dollar, and the Turkish lira has depreciated about 50% against the dollar over the past 12 months, Novogratz said. Therefore, for the population of these countries, bitcoin is a great opportunity to protect their savings.
In February, Michael Novogratz said that Bitcoin and gold are equally suitable for risk hedging. In January, Novogratz offered Peter Schiff a $1 million bet over Bitcoin. Last year, he noted that bitcoin is characterized by less volatility compared to other altcoins, and over time, the BTC rate will be more stable.
Source: Bits
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