Galaxy Digital billionaire and CEO Michael Novogratz has always been a cryptocurrency enthusiast but has now stated that Bitcoin is not suitable for payments.
Despite being described in the Bitcoin White Paper as a peer-to-peer digital currency, BTC is now considered an investment asset and a hedge against inflation.
“Bitcoin is not suitable for payments. Bitcoin blockchain is not ready for payments. It is not fast enough to process thousands and thousands of transactions, ”said Novogratz.
However, the billionaire stressed, bitcoin remains the most distributed asset in the world, with the exception of the US dollar, for investment and storage of wealth. In the future, bitcoin will become the “ultimate hedge fund”. People will keep their savings in bitcoins, as they are now keeping them in gold. Lots of investors will add Bitcoin to their portfolios.
“The most interesting thing about such assets is that they are social constructions. That is, they have value only because society believes in it. There has not yet been such a successful asset as bitcoin, created only 12 years ago. It’s like a child was thrown into the river, the community raised him and now the asset is worth $ 1 trillion, ”says Mike Novogratz.
The investor noted that the current macroeconomic situation seemed to be specially created for the growth of bitcoin. The economic support measures taken by the authorities of various countries make Bitcoin an ideal asset for investment.
In May, Michael Novogratz spoke positively about Ethereum, saying that the coin’s price could easily exceed $ 5,000.