Meeting of the Bitcoin Bulls: Galaxy Digital CEO Calls BitMEX a Money Making Machine on Pomp’s Podcast
This Wednesday, Mike Novogratz, the CEO of crypto-focused merchant bank Galaxy Digital sat for an interview with “Pomp”.
— Pomp 🌪 (@APompliano) March 20, 2019
Novogratz formerly worked as a hedge fund manager at the Fortress Investment Group and has been a very long-standing advocate for the crypto market, and back in 2007 and 2008, he was ranked as a billionaire by Forbes. He got involved with the crypto space just before he went ahead to retire from the Fortress firm and from here is where he becomes a CEO at the Galaxy Investment Partners, which was established as a crypto investment firm.
Mike believes that every single fund, regardless of whether they are crypto or hedge, should have some amount of Bitcoin in their possession. He added that the digital asset is “sovereign money,” even though it was originally no more than a social experiment with the blockchain technology is introduced.
“I think the most influential guy in the whole industry right now is CZ [Changpeng Zhao] and what they are doing at Binance… He is running at 100,000 miles an hour… Now, he doesn't have the same regulatory oversight that the rest of us do. He's just playing the game of ‘Catch Me If You Can'. But he is an unbelievably dynamic entrepreneur.”
However, he went into even greater depths when talking about Asian crypto markets:
“When you look back at the last three or four years, the most profitable parts of this industry…, in terms of building a business, was ‘can you connect into the gambling culture?'. The single best business out there right now is Arthur Hayes. It's just a freaking money-making machine! But Binance, BitMEX, Bitfinex, they all connected into this love of Asian gambling… Being able to profit on that… literally gave these guys a war chest to grow other businesses… I don't think in the long run those margins will be sustainable… the barriers to entry aren't high enough.”
Speaking on his first interaction with Bitcoin, he said that the committee does not view Bitcoin so much as a currency, considering it to be more of a payment system.
“It just isn't nearly big enough to reach their level of importance. We have a $20 trillion economy. I literally talked to one of the Fed governors two weeks ago about stablecoins. He said ‘no big deal'… They probably should worry about it more than they do, but it's just not on their radar… The problem is by the time they start paying attention, it'll be too late to do much about it.”