Michael Novogratz Tells Bloomberg Cryptocurrency Regulation is “Healthy”
Founder and CEO of Galaxy Digital Capital, Michael Novogratz Views Role of Regulators as “Healthy” in the Crypto World
Novogratz sat down with Bloomberg’s Erik Schatzker to help viewers understand the role cryptocurrencies might have on institutions. Some of the areas that were covered include the basics of cryptos, Novogratz entrance in the crypto market, and regulations.
Prior to getting down to business, those part of the audience were asked a question, with the following options to choose from:
Cryptocurrencies will be…
- Bigger than the internet
- Disruptive, but mainly to traditional banking.
- Something like digital gold.
- A speculative fad with no intrinsic value.
As per the live stats, majority of the audience chose “D”, which indicates that many still do not either see the usefulness of crypto or lack understanding altogether. When asked Novogratz which he would have chosen, he simply replied, “A -“, suggesting that it is like the internet – something that could change the world.
Novogratz was first introduced to the crypto market sometime in 2012, which was not too long from the recession of 2008. He went on to saying that his first move was merely to make money, as Bitcoin at his time was $96, and eventually rose to $1000. Once he saw the growth, the next goal was to focus more on understanding the specs, whether it be the blockchain, token economics, or computer science.
An important factor that the gentlemen discussed was on the matters of regulation. Schatzker asked, “why an institution would want to come before the SEC or the DOJ”, to which Novogratz replied:
“Regulators don’t come from retails; their job is to protect the retail. Regulators come from institutions… they missed this completely as there is no pointing on it.”
His position in regard to regulators, is that they are doing their job. In particular, he believes that their main goal is to “go after fraud and market manipulation”. Although the notion of “regulations” is distasteful to many, Novogratz sees it as “healthy” because it can eliminate the bad and distracting projects from the ones that do in fact have a chance at making a difference.
Ultimately, it is clear that Novogratz is all in for both token economics and blockchain technology. With more and more generations embracing the digital world (including US regulatory bodies), he believes that the use of tokens can help to build peer-to-peer systems, where every individual involved “feels like an owner”. To watch the entire conversion, go here: