At the Reuters Global Investment Outlook 2020 summit in New York on November 5, Mike Novogratz spoke about the future of cryptocurrency.
Mike Novogratz, the CEO of Galaxy Digital, is a long-term blockchain investor and advocate. Despite the crash in the prices of crypto last year which made him readjust his expectations, Mike continues to remain optimistic about the future of digital assets.
“I think ambitions have been tempered a little bit by reality,” he said commenting on the progress of blockchain.
“I think the timing is going to take longer than people had hoped. But it’s going to happen.”
The sudden fall in crypto prices last year was marked by many touting it as just another bubble. However, Mike believes that in the future, cryptocurrencies will play a huge role in our everyday lives.
The initial coin offerings had hit the market peak in 2018 at a whopping $800 billion. Since then cryptocurrencies have tanked and wiped away 85 percent of their total market value.
As the founder of a company that invests in crypto, Novogratz, affected by such a dramatic fall in the prices last year said that he was probably “too greedy” as his company relied on hedging strategies that did not fully protect investors.
He mentioned the Libra project that seeks to integrate blockchain technology into existing financial services. Talking about the sudden controversies surrounding Libra, he believes that Facebook could have spared itself a lot of flak had it described the project as a payment tool instead of a global currency.
He also believes that the recent comments by Chinese President Xi Jinping on blockchain were responsible for the surge in bitcoin prices. Last month the President had urged his people to embrace blockchain technology, however, China’s state publication was quick to point out that President’s comments were not supposed to be confused with the state’s stance on cryptocurrencies.
Though crypto trading continues to remain formally banned in China, on November 6, China took a step towards crypto by declaring that mining crypto would no longer remain undesirable in the country. It would perhaps not be too far fetched to believe that China’s central bank might perhaps be the first to launch a digital currency successfully.