Galaxy Digital CEO Mike Novogratz presents what he believes will drive the global adoption of Bitcoin (BTC).
Novogratz says in an interview with CNBC that bitcoin is not suitable for use as a currency, unlike other crypto assets such as Ethereum (ETH), which he notes is already serving as a medium of exchange.
“I don’t think it’s [Bitcoin] will be the currency. I think it will be a store of value. Ethereum is already being traded as a currency, right. It is the currency of culture. When do people buy NFTs [non-fungible tokens), they say ‘How many ETH does it cost?’”
According to the Galaxy Digital chief executive, high inflation and depreciating currencies will aid in the adoption of Bitcoin.
“People are opting into the Bitcoin community. There are literally more people that own Bitcoin than live in Russia. It’s the eighth-largest country in the world by participants. They freely opted in and said ‘We believe in this ethos of this community,’ which is a hard money way to store our wealth. And I think that will gain momentum as trust continues to break down.
Listen, if [Federal Reserve Chair] Jerome Powell and [U.S. Treasury Secretary] Janet Yellen can bring our economy back to 2 percent inflation and get our debt back, because growth is so high and the debt-to-GDP ratio is from 140 to 70, Americans won’t have to buy bitcoin.
But if you are in Russia, you feel pretty stupid having all your money in rubles. Or, if you are in Turkey, you feel pretty stupid having all your money in Turkish Lira.
And so, when there is bad economic management that our management hasn’t been great, let’s not hide it – Bitcoin provides a great alternative for people to just store their money.”
Since the US and its allies imposed sanctions on Russia following the invasion of Ukraine, the Russian ruble has lost more than 40% of its value against the dollar in less than a month.
On the other hand, the Turkish lira has depreciated by about 50% against the dollar over the past 12 months.
Bitcoin is trading at $41,859 at the time of writing.
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