Mike Novogratz says that Bitcoin is changing the paradigm of the world of finance thanks to the advantages that it offers. The businessman considers that the price is not the real code of Bitcoin since the users are the ones who define it.
Mike Novogratz, the founder of Galaxy Digital, recently said that Bitcoin is causing a paradigm shift in the world of finance. He talked to rapper Logic about the advantages that the pioneering cryptocurrency offers for investors. Likewise, he criticized Elon Musk’s “immaturity”, which he considers does not match his intelligence.
The billionaire businessman reiterated his position that Bitcoin is “digital gold”. He stated that, although gold and Bitcoin have the same qualities, the cryptocurrency has better technology. Besides, he stressed that it is in a strong accumulation phase among institutional investors.
The rising inflation in the post-pandemic US economy has caused alarm. The Federal Reserve announced that it will keep interest rates close to zero, which has aroused anxiety among investors. Since a reserve of value for capital is becoming urgent, assets such as gold, and Bitcoin are among the most demanded.
How Is Bitcoin Causing a Paradigm Shift?
The founder of Galaxy Digital considers that the first cryptocurrency is causing a paradigm shift. “That is why Bitcoin is far outperforming gold, although both cover the same,” he said. Investors are not only using the cryptocurrency in the speculative field but various scenarios.
He highlighted that banks have started using it and a growing number of businesses are accepting it as a form of payment. The recent adoption of Bitcoin as legal tender in El Salvador can also serve to complement Novogratz’s words.
The president of the Central American country proclaims himself a follower of Bitcoin and is now promoting important initiatives for mining. He particularly proposed to power the farms installed in El Salvador with energy from volcanoes.
Politicians from other countries, such as Panama, Mexico, and Paraguay, have welcomed El Salvador’s initiative. They have been promoting the use of the cryptocurrency, confirming Novogratz’s statement that Bitcoin is causing a paradigm shift.
Elon Musk’s Immaturity Does Not Match His Intelligence
Regarding the price of the first cryptocurrency, the businessman considers that it not the real code of Bitcoin. He said that Bitcoin has value because users say that it has value. He also stressed that investors who save Bitcoin for the future take into account its potential rather than its intermittent price.
He criticized billionaire businessman Elon Musk, the CEO of Tesla, describing him as a very intelligent person. However, he said that the executive shows some signs of immaturity, which negatively impacts the volatility of cryptocurrencies. In May, Musk announced that Tesla would stop accepting Bitcoin as a form of payment for its cars, causing its price to drop sharply.
He highlighted that the most valuable feature of Bitcoin is its scarcity, which the security of its network reinforces. The most important cryptocurrency by market capitalization has an issuance cap of 21 million units. The process to generate new coins through mining will conclude in 2140.
By Alexander Salazar
