Michael Novogratz, Galaxy Digital CEO and chairman, said that Bitcoin (BTC) is not a real threat to the U.S. dollar.
He has also mentioned that Bitcoin is gold and not a payment system such as Libra or other stablecoins.
Novogratz Says Bitcoin is Gold
Novogratz said that Facebook’s Libra made a huge mistake by presenting itself as a new currency rather than as a payment system. This could be one of the main reasons why governments and regulatory agencies are worried about this new development conducted by Facebook.
The CEO of Galaxy Digital was asked whether China and Libra are a threat to Bitcoin. He answered that these two payment systems are additive to Bitcoin. He went on saying that Bitcoin is gold and not a threat to the U.S. dollar.
On the matter, he commented:
“[China and Libra] are additive to Bitcoin. What China is working on – a digital renminbi – and Libra – a digital dollar or basket of currencies – are payment systems, are currencies, while Bitcoin is gold. Gold is not a threat to the dollar and Bitcoin is not going to be a threat to these payment currencies.”
Could Bitcoin Fall To $4,500?
During the conversation, he said that the next downside for Bitcoin would be close to $6,500.
“Bitcoin is going to need new energy to make the big move,” he said.
He mentioned that several positive things are happening. For example, the New York Stock Exchange (NYSE) launched Bakkt that is starting to gain volume and they are now offering custody for large clients that would allow more people to feel comfortable investing in cryptocurrencies.
Novogratz has also talked about how those that have large sums of money are older generations that keep their funds in brokerage accounts. Meanwhile, younger generations didn’t have access yet to this money.
Younger individuals tend to invest through online cryptocurrency exchanges while other generations use to invest through more traditional investment tools such as an exchange-traded fund (ETF).
The U.S. Securities and Exchange Commission (SEC) has not yet approved a Bitcoin ETF to be launched. Although there were many proposals from different companies in the market, the regulatory agency considers the space should be more mature before being able to approve a Bitcoin ETF.