Bitcoin Bull Mike Novogratz Believes in Facebook Coin, Calling It “Important” to Crypto Market
- Facebook’s crypto asset, GlobalCoin, is planned to be launched in 2020.
- Galaxy Digital CEO and founder Mike Novogratz spoke with CNBC about his optimistic view of the cryptocurrency.
The drama surrounding the introduction of the Facebook Coin has been around for several months as the social media platform unsuccessfully attempted to keep the project under wraps. Hiring a blockchain team on a public job website months ago, the company still remained quiet about their intentions. In fact, it was only recently that they confirmed the speculation of a Facebook crypto asset to be true.
Reports show that the issuance of GlobalCoin will ultimately be controlled by Libra, which is a subsidiary that is based in Switzerland. The coin will most likely be launched through the WhatsApp app, which is another one of Facebook’s messenger services. Mark Zuckerberg allegedly spoke with the Winklevoss twins about the launch, due to their success with the Gemini exchange.
Much like the launch of the crypto asset by JPMorgan Chase, there have been mixed feeling about this type of launched. However, Galaxy Digital founder and CEO Mike Novogratz appears to have a positive perspective on the token, which has been dubbed GlobalCoin. Due to be released in 2020, Novogratz was interviewed on CNBC, where he stated that there would be at least one of the coins launched by a social media platform to succeed.
"Facebook is wildly important for the ecosystem" – @novogratz on #cryptocurrency "Bitcoin is not going to be a payment currency. Bitcoin is going to be a stored value just like gold." pic.twitter.com/NzyPeLxI3T
— Squawk Box (@SquawkCNBC) May 24, 2019
Elaborating on his point, Novogratz noted that both Facebook and Telegram are expected to launch assets, and that one of them could ultimately rise up as “a real currency.” Earlier this month, he expressed a somewhat controversial stance when he claimed that Bitcoin was reaching the end of the possibility of it being considered a store of value in the crypto world. Realistically, Novogratz mostly held this stance as a result of the lack of innovation and motivation behind pushing the token further, but there were multiple Bitcoin proponents who took this to mean that Bitcoin would be pushed aside.
To give more clarity to his stance during his interview, he explained that Bitcoin acts as a store of value, following the nickname of “digital gold” that the asset was given long ago. This status is unlike the transfer of wealth that is symbolized with fiat currency. As Novogratz sees it, the GlobalCoin is meant to be used mostly for payments, which provides a necessary but unique usability.
The cryptocurrency market is setting itself up for another bull run, which Novogratz has taken to mean that the crypto winter is over. Based on the way that investors are currently reacting to the market, it is clear that they are willing to return to the market after the bearish trend that took over 2018. During the interview, Novogratz stated that the retail side of the industry comes in waves, but with 7.5 billion people in the world, it is fairly likely that a big portion of them will be coming into the market still.
The price of Bitcoins and altcoins depends on new and continued investments, and Novogratz believes that this slack will be picked up by institutional and retail investors as widespread adoption happens. Where does your crypto investment stand?