Bitcoin, the world’s largest cryptocurrency by market capitalization, is not going to transform the world as it is just a store of value, Michael Novogratz, the CEO of Galaxy Digital, mentioned at the ConsenSys’ Ethereal Summit on May 11.
It is to be noted that Novogratz is a major bitcoin bull and former Wall Street exec. He made his comments during a speech entitled “The Herd Is Still Coming!” at the crypto event.
Novogratz started his speech with bitcoin. The Bitcoin permabull claimed that the cryptocurrency has been establishing itself as a store of value. He further noted that it is kind of finished in terms of fulfilling its use case as a store of value. The Galaxy Digital CEO also compares the virtual asset to gold. He further argued that both the assets have value as a social construct.
Interestingly, Novogratz argued that since BTC represents a store of value or acts as digital gold, it is not going to transform the world. In addition, he stated that instead, it is web 3.0 that has the potential to modify the world. As per Novogratz, web 3.0 envisages a revolution in how networks function and data is treated as it is a decentralized platform to process information. He added that it’s untying data from the processing of it. The bitcoin permabull further noted that public ecosystems like Ethereum and other competitors are all vying for this domain.
Interestingly, Novogratz compared different digital assets and cryptocurrencies with chemical elements in the periodic table. It is to be noted that Novogratz considered the role of different altcoins. He hinted that each virtual asset will have to prove itself out in order to provide a definite use case. Novogratz further argued out that there is no one building anything on the litecoin blockchain, as opposed to the Ethereum blockchain.