The founder of the crypto bank Galaxy Digital, Mike Novogratz, called the exodus of miners from China “a big plus” for the cryptocurrency industry. In an interview with Bloomberg, he said that China’s repressive policies would not interfere with the development of Bitcoin. Beijing’s attitude towards crypto mining hardens and Chinese provincial governments take harsh measures against the industry. So, chinese miners are fleeing to countries where they are less objectionable.
Mike Novogratz noted that after the transfer of the companies’ capacities to other countries, mining will not only be preserved, but will also strengthen its positions.
As we can see, more than 60% of the Bitcoin surplus didn’t lead to the collapse of the crypto market. According to Novogratz, the market crash in May only proved the viability of the digital asset ecosystem.
The Galaxy Digital CEO reiterated Bitcoin’s position as a digital version of gold. According to him, the precious metal is already 3000 years old. For the next three millennia, its role will play the first cryptocurrency.
However, according to Novogratz, Bitcoin will never become a payment instrument. But it will find application in the field of investment and savings.
The billionaire also highlighted the diversity of blockchain projects. In his words, what is happening in the industry is “not a hunt for coins with ridiculous names, but a serious approach to restructuring the global financial architecture”.
Ethereum to become # 1 cryptocurrency?
Novogratz believes that in the long term, Ethereum will remain the second largest digital asset by capitalization. Or even “one day it will become the largest cryptocurrency”. Thus, Mike Novogratz believes that Ethereum could potentially one day turn Bitcoin around and become the # 1 cryptocurrency.
However, he also points out that Ethereum faces stiff competition from ecosystems like Cardano, Solana, Terra and others, so its leadership not guaranteed.
The crypto tycoon predicts that things to be built on Ethereum or other platforms over the next five years will be amazing.
Regulation of the crypto industry
When asked if his clients worried about the ongoing market correction, Novogratz replied that the crypto revolution is still in its early stages. He claims that no one really thinks cryptocurrency is going away. Novogratz believes that regulation will make the industry even stronger.
He also states that the cryptocurrency community needs to better educate lawmakers after yesterday’s Congressional hearings. And yesterday’s hearings in the US Congress showed a complete “panic” reigning in the heads of those who are going to regulate the US cryptocurrency market. They just don’t know what to do about it.
Cryptocurrency markets were the subject of a hearing yesterday before a House subcommittee that focused on financial investigations. Specifically, lawmakers wanted to know if cryptocurrency volatility would be considered a risk for many of the involved retail investors. Suggesting comparisons to the 2007-08 financial crisis. The main question was whether crypto markets require new laws or more clarity from regulators in accordance with existing laws. And they could not come to any consensus.