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Mike Novogratz Gives His Support for Social Media Cryptos

Mike Novogratz Social Media Cryptocurrency

Galaxy Digital Founder and CEO Mike Novogratz recently shared his views on the rise of social media cryptocurrencies, particularly with news coming out about the launch of Facebook’s GlobalCoin in 2020.

Novogratz, who has been a regular cryptocurrency pundit and established Bitcoin bull, voiced support for the creation of social media cryptos, even if he doesn’t believe all of the projects will ultimately succeed to the same degree as BTC. In an interview with CNBC published on May 24, the billionaire investor claimed that at least one of the social media coins will succeed.

Novogratz explained,

“I think Facebook’s payment currency, I think Telegram’s gonna have one…You’re gonna see one of those payment coins work, and I think that has the chance to be a real currency.”

Earlier in May Novogratz stirred debate around the future and utility of Bitcoin when he claimed that the original cryptocurrency was reaching the end of its potential as a store-of-value digital asset. While Novogratz was commenting more on the lack of innovation left to developing Bitcoin, BTC enthusiasts questioned whether he meant the coin was no longer poised to be a dominant player in the sphere of cryptocurrency.

Novogratz updated his stance on Bitcoin in the interview with CNBC, reiterating that the coin constitutes a store of value–similar to a digital version of gold–as opposed to the transfer of wealth inherent in most currencies. However, compared to Bitcoin, Novogratz believes that Facebook’s GlobalCoin will be used primarily for payments, distinguishing it from the original cryptocurrency in terms of usability.

The Galaxy Digital CEO also gave his opinion that the ‘crypto winter’ for coin prices is largely over, and that cryptocurrency is entering the start of a bull market. Novogratz explained his belief that cryptocurrency investors, despite being burned in the severe valuation drop throughout 2018, will not be reluctant in their return to the market, telling CNBC,

“I don’t think it’s the case. And a lot of institutions never got in, so they felt kinda smart and now all of them say, ‘Wait a minute, now there’s more cover.’ […] Retail will come and go, and a lot of the guys who got burned won’t come, but there’s seven and a half billion people on the planet, there’s plenty of retail customers to continue to come in. ”

Novogratz is relying upon the entrance of institutional investors to continue driving the price of Bitcoin and altcoins higher, in addition to retail investors who either missed the initial collapse of the crypto markets or are still bullish on their outlook.

He also took time to declare his interest in network-based currencies such as Ethereum and EOS, which he referred to as ‘3.0’ coins. However, despite the innovation being developed by Ethereum and other similarly developed cryptocurrencies, Novogratz believes the competition in the space has become intensified in the race for Web 3.0 network dominance, and that it will likely be ‘years’ before a preeminent currency emerges.

The post Mike Novogratz Gives His Support for Social Media Cryptos appeared first on Ethereum World News.

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Billionaire Mike Novogratz: Bitcoin Store of Value “Not Going to Change the World”

Mike Novogratz Bitcoin Web 3.0 2019

Billionaire investor and long-time Bitcoin bull Mike Novogratz shared some interesting views on the current state and future of the leading cryptocurrency by market capitalization.

While Novogratz has been an overwhelming proponent of Bitcoin and cryptocurrency, recently predicting that BTC would reach $20,000 by the end of 2020, he believes that the coin is reaching the end of its potential as a store of value. Speaking at ConsenSys’ Ethereal Summit May 11 on a panel titled, “The Herd is Still Coming!,” Novogratz explained that Bitcoin largely functions as a digital store of value and has managed to build on its competition by the being the first cryptocurrency to market, saying “it came first.”

As far as the potential for new development or innovation as a store of value, Novogratz claims that the coin is “kind of finished” in terms of maximizing that specific use case. Novogratz then made the common analogy of Bitcoin as a digital for of gold, claiming that both serve as a store of value for investors but largely function as social constructs. Similar to investors buying Bitcoin, gold continues to hold and change in value based off the expectations of its social surrounding, as opposed to exhibiting truly intrinsic worth.

Despite being historically bullish on BTC and cryptocurrency, Novogratz concluded that Bitcoin was unlikely to change the world. Following up on his comparison of Bitcoin as a store of value, and being a limitation of the currency’s use, the former Wall Street exec claimed that BTC is  “not going to change the world.” Instead, Novogratz highlighted ‘Web 3.0’ as the most likely technology to institute dramatic change, stating “it has potential to change the world.”

Some community members have found fault in Novogratz’s take on Bitcoin’s limited use, and for relying on the tired comparison to gold. However, the billionaire investor’s comments appear to be more in support of ‘Web 3.0’ as opposed to an indictment of Bitcoin. He also coached the limitations of Bitcoin in a broader criticism towards the extensive altcoin market.

Novogratz explained that the vast market of altcoins will have to “prove themselves out,” as viable solutions and providers of utility, as opposed to being carbon-copy coins that generate undeserved billion-dollar market capitalizations. While Bitcoin may have reached its limit as a digital store of value, the broader altcoin market has yet to prove much in terms of usefulness. According to Novogratz,

“If you really think bitcoin is gonna win this store of value, everything else needs to be used for something.”

In April, Novogratz took aim at Litecoin in a series of tweets questioning the investment interest in LTC over Bitcoin,

“Gold has an $8.5 trillion dollar market cap. Silver is $15bn That is .17%.  $BTC has a $90bn mkt cap. $ltc is $5.7bn which is 6.4% of $BTC. Silver is at least useful for industrial production.  $ltc is a glorified test net for $btc. I don’t get this rally. Sell $ltc buy $btc.”

The price of Bitcoin has continued to climb throughout the weekend, trading at $7100 as of writing.

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