Crypto enthusiast believes that the main crypto coin will become a store of value
Galaxy Digital CEO Mike Novogratz expressed an opinion that the main crypto coin is not suitable for the role of a currency, unlike other digital assets. The entrepreneur believes that ETH is more likely to become a currency than BTC, since the second most popular coin is used for NFT trading.
“I don’t think [Bitcoin] 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?” the businessman said.
At the same time, Novogratz believes that high inflation and the depreciation of fiat will become a prerequisite for more active adoption of bitcoin.
“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 billionaire.
The CEO of Galaxy Digital also believes that, in theory, US citizens can refuse BTC if the US authorities manage to improve the situation in the economy. And when the economy is unmanageable, cryptocurrency is an effective alternative to the usual storage of your savings.
Novogratz stressed that this also applies to countries such as Russia and Turkey, where a serious increase in inflation has been recorded. He pointed out that in less than a month, the Russian ruble has depreciated by 40% against the US dollar, and the Turkish lira has fallen by almost 50% against the US currency in the previous 12 months. That is why for the citizens of Russia and Turkey, the entrepreneur is sure, BTC is the best option to protect their savings.
Earlier, members of the crypto community negatively assessed the initiative of Senator Elizabeth Warren, according to which foreign crypto companies can be required to comply with the sanctions of the US government. Kara Calvert, head of policy at cryptocurrency exchange Coinbase, said the bill was “untrue and undemocratic.”
Coin Center CEO Jerry Brito is confident that the initiative has very little chance of getting approval. The document “does not have bipartisan support, it doesn’t look like it’s going to be tied to anything that needs to pass, and it goes against what pundits and the administration are recommending,” he said.
Jake Chervinsky, head of policy at the Blockchain Association, stated that “now is not the time to call Congress and pull the red lever.” The bill in its current form has absolutely no support, which probably won’t go any further.