Michael Novogratz, CEO, Galaxy Digital, has brought up a point that the leading cryptocurrency Bitcoin (BTC), is a store of value (SoV) like Gold and it is not going to change the world. The billionaire expressed his stirring thoughts at ConsenSys’ Ethereal Summit on May 11.
The ex-hedge fund manager and one of the major cryptocurrency-related-project investors during the summit cited in a speech titled “The Herd Is Still Coming!” and further he articulated that “Bitcoin is just kind of finished” in terms of having more use cases as a store of value.
However, the founder of Galaxy Digital- a merchant bank specializing in digital assets has already earned a lot by investing in digital assets and blockchain space enterprises. From the initials days of his investments in the major cryptocurrency Bitcoin (BTC), the former Wall Street executive of Goldman Sachs believes that Bitcoin is a “digital gold” which only serves as a medium of exchange (MoE) and it is just a digital currency which is limited to being used as a medium to exchange value and that is why the dominant crypto asset is not going to change.
Whether Bitcoin Or Gold Both Denotes Social Construct
Novogratz while comparing the world’s dominant crypto asset to gold, evaluated that both have value as a social construct because Bitcoin is a digital gold which represents as a store of value.
The well-known bitcoin bull while going further put alt coins in his evaluation and judged the major digital asset to other altcoins. He mentioned that Bitcoin as an SoV is going to be limited due to may use cases. He also suggested the importance of altcoins and said that every other altcoin is different and they have to separately prove their worth through the real use cases like the chemical elements present in the periodic table. He explains: Just like elements in the periodic table are arranged by atomic number, electron configuration, and recurring chemical properties, every altcoin is different in their concept of presenting the real use case and prove themselves and this phase is yet to come. The altcoins still have to establish their market value.
The expert also highlighted indirectly that importance of Litecoin (LTC) and indicated that the use case for is yet to be constructed on the Litecoin blockchain which is itself one of the glorified testnets for BTC.
Web 3.0 Will Change the World, Not Bitcoin
The veteran investor also argued that instead of Bitcoin it is web 3.0 that has the real potential to change the world.
He said, “Web 3.0 is a decentralized platform for processing information and separating data from the processing of it”
Novogratz is of the opinion that Web 3.0 protocols present the picture of revolution where people on a decentralized platform network can function enormously and data would be treated majorly in a proper storage and retrieval form of information and this would be possible on public blockchain ecosystem like Ethereum. All the public blockchains including Ethereum which provides smart contract are vying amongst each other in this revolutionary space.
Bitcoin To Return To Its $20,000 in the 18 months
Last week the investment banker also predicted in an interview with CNN that the leading cryptocurrency will break all-time-high record within the approaching 18 months and it will reach to $20,000 soon.
There are various analysts are foreseeing the Bitcoin rally and with the price surge, Tom Lee is claiming that in a very short timeframe Bitcoin has the potential to provide real money and trend that has been going on since 2013.
At press time, the crypto market perked up and giving good forecasting analysis for making rapid money. Bitcoin already surged over $7,800 with a market capitalization of $138,440,176,900 the digital asset is crossing another level of growth in the past 48 hours.