Galaxy Digital CEO Mike Novogratz says bitcoin is a great alternative and a lifeline to people in countries with poor stewardship of the economy. He expects the price of the cryptocurrency to hit $500K. “We see an adoption cycle that accelerates … going viral everywhere,” he said.
Bitcoin is a “great alternative” in some economies
Galaxy Digital CEO Mike Novogratz spoke about the outlook for bitcoin and the US dollar in a few interviews this week.
“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.
Elaborating on what he meant, the Galaxy Digital exec detailed:
It means 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’re entering an unknown world where people are going to have a hard time understanding what the reserve currency is,” he said.
“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,” Novogratz described.
“Gold and, certainly, digital assets will be part of that bucket. The whole world isn’t going to switch to bitcoin overnight, but you’re going to see more and more people say, ‘I want to have some of my money apart from the sovereign,” he explained.
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 for people in countries where the management of the economy is really poor.
He similarly told CNBC Thursday: “When there’s bad stewardship of economies … bitcoin provides a great alternative.”
While admitting that “our management hasn’t been great,” the executive pointed out: “If you were in Russia, you would feel pretty stupid having all your money in roubles. Or if you were in Turkey, you would feel pretty stupid having all your money in Turkish Lira.
Bitcoin Could Hit $500,000
The Galaxy Digital boss was asked about his price prediction for bitcoin. He replied:
Five years from now, if bitcoin isn’t at $500,000, I’m wrong about the adoption cycle.
“We see an adoption cycle that accelerates. Bitcoin grew so much faster last year, crypto grew, than the internet did its best years in the 90s. I see this going viral everywhere,” he shared.
Novogratz also commented on the Executive Order on Cryptocurrency Regulation signed by President Joe Biden last week. He noted, “Politics has changed even on the Democratic side. It’s not anti-crypto anymore, it’s like, “Wait, there’s a lot of crypto voters.”
