Mike Novogratz, an ex-Wall Street official, noted the mass adoption of crypto and blockchain will be five to six years. This was according to the report of Blokt, a blockchain and tech news outlet.
In his speech at the Beyond Blocks conference in South Korea, Novogratz, who currently works as Galaxy Digital’s CEO and founder, has shown optimism that many organizations will embrace the industry “in the next two to three years.” He added, “without that, we will be running in circles.”
However, the executive noted the mass adoption of crypto and blockchain technology will be after half a decade.
The Galaxy Digital CEO said the mass adoption will take place five to six years away until the users feel the need for something new.
Novogratz cited that one of the challenges to the widespread use of the new technologies is the rising “cost of technical talent” and the doubts of traditional investors. These issues are being compounded by no clear and lack of support from the financial industry.
He shared how institutional investors work, saying it is difficult to tell your boss about making an investment in something that you may not have heard of.
The executive said you need a trusted company or at least a name of the custodian. It could be a Japanese bank, HSBC, ICE or Goldman Sachs to let the institutional investors be comfortable.
The investment banker stressed the necessity for a due regulatory means that is set-up by the government and push the public to use blockchain and crypto. He added it is not necessary for users to know the technology in detail.
While financial regulators are focused on professional organizations such as JPMorgan and Goldman Sachs, Novogratz noted the industry is banking on retail investors. He suggested the regulators give priority to the retail sector compared to large professional institutions.
Recognized as one of the richest entrepreneurs this year, Novogratz had a stint at Goldman Sachs and Fortress Investment Group before he launched the Galaxy Digital, a crypto merchant bank, in January 2018.
He was the banker who was known to have predicted that Bitcoin will reach $10,000 by end of 2017 and Ethereum would attain a value close at $500. In reality, these cryptocurrencies became twice as much with BTC getting as high as $20,000 in December 2017 and ETH over $1,300.
Sometime in May, Galaxy Digital tied a knot with Bloomberg to establish the Bloomberg Galaxy Crypto Index.