Mike Novogratz: Bitcoin Is Replacing Gold As Hedge For Inflation, Here’s Why
Mike Novogratz, the CEO of of Galaxy Digital, believes that Bitcoin (BTC) is replacing gold as the new go-to asset for people looking for protection against inflation.
During the recent Galaxy Digital’s Q3 earnings call, Novogratz noted that gold’s recent performance might have been okay before, but it’s being “crushed by bitcoin.”
“I think if you had asked gold bugs two years ago where the price of gold would be, given what’s happened in monetary and fiscal conditions around the world, they would have all answered far higher than here at $1,800.
What’s happened? There’s been a substitution of Bitcoin for gold. We’ve seen it directly and indirectly. You see it in the charts. I still think gold was probably an okay asset to own in this environment, but it’s just gotten crushed by Bitcoin…”
The billionaire believes that Bitcoin adoption will continue to increase while making comparison how new technology sometimes can completely replace the old.
“If you think about any other shift when we went from analog to digital, how many people still use Kodak film? Bitcoin is just a better version of a store of value, and it’s being accepted at an accelerating pace…
There are now over 200 million people around the world that participate in the Bitcoin ecosystem, and it continues to grow.”
Novogratz makes a case that bitcoin has passed the bar on whether people see it as store of value, and from here on out the adoption is only going to grow due to its digital advantages.
“A store of value gets its worth from the social construct. People agree that it’s valuable. ‘I’m going to hold my hard-earned money, my labor, my savings in this form.’
The debate about ‘Is it a store of value?’ is way over. It was over nine months ago, and so now it’s just adoption. And it doesn’t mean it won’t be volatile… I just think you are going to continue to see it adopted. It’s cheaper to store. It’s easier to move.”
Over the past 24 hours Bitcoin is up 2% and at the time of writing trades around $57,700 level.
