Mike Novogratz: Bitcoin will never become a means of payment

The founder of Galaxy Digital, the crypto bank, Mike Novogratz, said on the Exchanges at Goldman Sachs podcast that Bitcoin will not become a means of payment, because its blockchain is not suited for this.

Is crypto a new asset class? Galaxy’s Michael Novogratz and NYU’s Nouriel Roubini discuss the path and obstacles to further institutional adoption on Exchanges at $GS: https://t.co/1VhMe7gQ8g pic.twitter.com/QYXBOu532h

— Goldman Sachs (@GoldmanSachs) June 1, 2021

According to the billionaire, digital gold will be used as a store of value and an investment asset.

“Bitcoin is not suitable for payments. The system is really not suited for that. It is not fast enough for thousands and thousands of transactions,” he explained.

Novogratz stressed that store-of-value instruments are “social constructs,” and Bitcoin is the most widespread of them after the US dollar. In his words, the investment appeal of the leading cryptocurrency lies in this.

“It [Bitcoin] has value because we believe in it. There has never been a more successful brand created by a community in 12 years,” the investor added.

The billionaire noted that the current macroeconomic situation seems to be “deliberately created” for owning digital gold — aided by stimulus measures undertaken by governments around the world.

At the Bitcoin 2021 conference, Novogratz said he was “extremely optimistic” about institutional adoption of the first cryptocurrency.

“I’m wildly optimistic that’s happening (institutional adoption). It takes time, but I am bullish in this space.” — @novogratz

— Cointelegraph (@Cointelegraph) June 5, 2021

“We’ve convinced the world that Bitcoin is a wonderful alternative to gold. It is a store-of-value instrument that can be used in any country to hedge fiat risk. Patience is the path to success. Revolutions do not happen overnight. Our work will not be done until every person on Earth has a Bitcoin wallet,” he said.

In March 2021 the billionaire stated that the market capitalization of the leading cryptocurrency will inevitably reach and surpass the benchmark for gold. He also acknowledged that the previous Bitcoin price forecast of $60,000 was too conservative.

Mastercard’s executive chair Ann Cairns said that Bitcoin does not behave as a payment instrument — it is highly volatile and transactions take too long. In her view, as an asset class, the leading cryptocurrency is closer to gold.