Mike Novogratz, the founder, and CEO of crypto firm Galaxy Digital is one of the world’s most ardent supporters of cryptocurrencies. At an event organized by CNN on Thursday, he urged investors to look beyond bitcoin’s frequently huge daily fluctuations and consider the larger picture.
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When the host of the show asked Mike that, “Who is going to regulate crypto, SEC, or anyone else, and are they going to overregulate this and suppress innovation that could be of huge benefit to society?”
Mike replied, “There’s nothing more progressive than cutting out the rent takers, banks charge $8 billion a year in overdraft fees, they charge $3.50 to $4 on an ATM transaction that mostly hit the poor. Crypto will make banking or money transfer relatively free and so it really is progressive. We have done a bad job educating them and there is a big education initiative that has to happen.”
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He further added, “ Right now Gary Gensler, who runs the sec and understands crypto, wants to be the regulator.”
He explained that a lot of cryptocurrencies aren’t securities according to the law so it’s not even clear that SEC has got the right to regulate them. So Gary Gensler is pushing congress to give him more power to regulate. SEC has got right to regulate some of the space but not the broad wrath of regulations Gary wants.
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Mike called the crypto industry young and highlighted the number of jobs this industry is creating. He also called the transactions transparent and self-regulating.
According to CoinDesk, Bitcoin is up roughly 45% this year and almost 300% in the last year.
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Much of the attention on the bitcoin frenzy is on the underlying technology, according to Novogratz, but he believes the crypto sector offers a new investor identity that goes beyond merely seeking a return. Betting in bitcoin entails believing in a fundamental shift in the way money operates today.
On Thursday, Bitcoin was trading slightly around $43,000 per coin. Novogratz believes it will be valued at more than $500,000 per coin in ten years.