Bitcoin survives despite all China can throw at it says Novogratz

Mike Novogratz, CEO and founder of Galaxy Digital, spoke to Bloomberg earlier this morning on the impact that the Chinese crackdown has had on Bitcoin and cryptocurrencies. He also discussed how he thought Bitcoin would be the digital gold of the next three thousand years. 

Mike Novogratz spoke to Bloomberg in an interview earlier today. He remarked on how China had made a major assault on Bitcoin by banning mining and prohibiting certain crypto transactions, but despite all this Bitcoin still persists. 

He went on to say how he thought that moving mining out of China would actually be a “big net positive for the ecosystem”. He saw all the negative moves over the last three weeks as a real test for crypto, one that he thought crypto had passed with amazing success. 

On the ongoing crypto crash, Novogratz said that the “robust” Bitcoin system was working exactly as it was supposed to without the intervention of a “plunge protection team” that would have been called in had this happened to the traditional financial system. 

When asked about how Bitcoin was usually compared to gold, Novogratz remarked: 

“I think Bitcoin has carved out a lane to be digital gold. Gold has existed for three thousand years and I expect Bitcoin to be the digitial version of gold for the next three thousand years.  

“In lots of ways it is a beautifully designed store of value.” 

Novogratz then went on to talk about Ethereum and how it might even become the biggest cryptocurrency one day. He thought it would be the “base level of trust” and the “web 3.0 where things get built on top of it”.  

He acknowledged that there were competitors out there such as Solana and Terra, but he believed that Ethereum would become the premier blockchain. He referred to all the “creativity” being built on top of Ethereum like NFTs, stablecoins and decentralised finance.  

“This is not us punting on coins with funny names. This is a serious, serious approach to rebuilding the financial architecture of the world.” 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.