Galaxy Digital’s Michael Novogratz recently joined CNBC to discuss all things cryptocurrency.
Early in the interview, Novogratz reiterates his stance that Bitcoin serves more as a store of value, comparing the apex cryptocurrency to gold. He also stated that, like gold, Bitcoin won’t be used to purchase things and will remain limited to being a store of value.
The conversation then turns to Facebook’s upcoming cryptocurrency. “I think Facebook is wildly important for the ecosystem,” Novogratz says. “Here you have one of the biggest companies in the world saying ‘cryptocurrencies will be a part of our future’.”
The Galaxy Digital CEO was then asked who’s buying Bitcoin. Aside from retail investors, Novogratz states institutional investors are beginning to get involved. “The Yale endowment moved into Bitcoin, the Standford endowment moved into Bitcoin. Harvard’s endowment has moved into Bitcoin.”
On this note, Novogratz was asked if those who got “burned” by Bitcoin in the past won’t buy again for many years. Novogratz replied with:
“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 […] but there are seven and a half billion people on the planet, there’s plenty of retail customers to continue to come in.”
At the end of the interview, the conversation returned to Facebook’s cryptocurrency. Novogratz states:
“I think Facebook’s payment currency, I think telegram’s gonna have one. You’re gonna see one of these payment coins work, and I think that has a chance to be a real currency.”