Most Cryptos Will Fail, But Bitcoin Could Be Here For Good

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CNN

By Anneken Tappe, CNN Business

Bitcoin is one of the most polarizing investments in history. Ask a skeptic and he’ll tell you it’s a bubble that’s about to burst. Ask a believer, and he will tell you that it is a bubble that will continue to expand forever.

Mike Novogratz, founder and CEO of the Galaxy Digital crypto fund, is one of the world’s biggest believers in the potential of cryptocurrencies. During a live event on the foreseeable future of CNN Business on Thursday, he encouraged investors to look beyond the often massive daily fluctuations in bitcoin and take a look at the bigger picture.

“Bubbles and manias are happening around things that fundamentally change the way we think,” Novogratz told CNN’s Julia Chatterley at the event. “Finance will be disrupted by decentralized systems, I am sure. “

Bitcoin is up about 45% this year and nearly 300% in the past 12 months, according to CoinDesk.

Much of the focus on the bitcoin craze is on the technology behind it, Novogratz noted, but he believes the crypto space represents a new identity as an investor beyond just looking for it. a return. Betting on bitcoin is believing in a fundamental change in how money works today.

Bitcoin traded just below $ 43,000 per coin on Thursday. Novogratz expects it to be worth more than half a million per coin in ten years.

But while bitcoin is the biggest and most popular coin, there are thousands more with much smaller market caps and possibly perhaps stamina.

“I would bet 75% of cryptos won’t make it” over the next decade, Novogratz added.

Upcoming regulatory review?

Although the digital currency space is filled with hungry investors and plenty of opportunities to make money work, a dark cloud continues to hang over it: regulation.

It’s still unclear which regulator is supposed to oversee the crypto market, in part because it’s unclear whether the cryptocurrency is a security or a currency.

Some regulation would help, Novogratz said, but he expressed the importance of some freedom to innovate.

“We are all in favor of regulation in the space,” said Tavonia Evans, who founded crypto Guapcoin to amplify the economic voice of the black community. That’s why she reached out to regulators to work together on rules that make sense and don’t stifle this new industry.

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