Bitcoin has often been touted to be a hedge against bad policies of centralized governments, and the narrative is not going away soon. Mike Novogratz, the CEO of Galaxy Digital, stated that Bitcoin will continue to see more adoption as long as governments continue to tumble with the economies of their countries.
Bitcoin will only get more momentum in adoption, says Novogratz
In an interview with CNBC, Novogratz noted that Bitcoin is not likely to succeed as a transactional currency. However, it’s forte would be as a store of value (SOV) asset or “digital gold.”
The serial investor stated that Bitcoin adoption as an SOV was already very advanced. The Bitcoin community is currently the 8th largest country in the world by participants, more populous than even Russia. The community has attracted participants who have lost faith in their governments and would continue to do so as long as trust gets eroded.
Novogratz cited the US, Turkey, and Russia as case studies of the rising disillusionment with governments.
He explained that if the Fed chairman Jerome Powell, or the treasury secretary Janet Yellen, could get the US economy out of inflation, there would be no need for US citizens to buy Bitcoin.
Similarly, Russian and Turkish citizens who have their wealth in the Russian ruble or Turkish lira would be feeling stupid at the moment going by the current economic situations of both countries.
And so, when there is bad stewardship of the economy – which our stewardship has not been great, let’s make no bones about it – Bitcoin provides a great alternative, Novogratz maintained.
Bitcoin bullish outlook stronger than ever
The Bitcoin bull has previously stated that he expects “viral adoption” of the pioneer cryptocurrency to be the catalyst needed for the price of the asset to reach $500,000 in the next five years.
The Galaxy Digital chief executive has not been the only bull recapitulating their Bitcoin stance. Michael Saylor, the CEO of MicroStrategy, recently called Bitcoin “the American dream” for its ability to be detached from political tensions.
However, Bitcoin has continued to trade with apparent volatility in the market. The price has ranged from a high of $41,300 to a low of $37,700 in the last week. Bitcoin is changing hands at around $40,700, down 0.11% in the last 24 hours at the time of writing.