Novogratz: ‘Galaxy is Making More in a Day Than in All of 2018’

The last time Michael Novogratz, the founder and CEO of Galaxy Digital, worked this hard was in 1997 during the Asian financial crisis.  But Novogratz isn’t in the midst of a cascading currency crisis tearing apart emerging markets in the East. […]

article-image

Source, CNBC

share

key takeaways

  • Galaxy Digital’s Michael Novogratz shared his thoughts on digital assets and macro economics at a recent Canaccord Genuity webinar
  • Novogratz believes a confluence of factors is going to mean a perpetual bull market for bitcoin in 2021

The last time Michael Novogratz, the founder and CEO of Galaxy Digital, worked this hard was in 1997 during the Asian financial crisis. 

But Novogratz isn’t in the midst of a cascading currency crisis tearing apart emerging markets in the East. Rather, as he shared in a recent Canaccord Genuity webinar, he’s guiding a company through a booming market. 

“In 2018 we started Galaxy thinking the institutions were going to come, but at the time a lot of infrastructure was being built and they just didn’t come,” he said during the webinar. “We once sat waiting for the institutions to come, now I can’t hire people fast enough.”

Novogratz, who recently predicted that bitcoin would hit $100,000 by the end of the year, believes that every company will eventually be adding bitcoin to their balance sheet.

Why? It’s one part hedge against inflation as well as currency debasement, and another part signaling to Generation Z that the boardroom is aware of the limitations of traditional finance.

Source: Canaccord Genuity


The economy is a “bull in a pen” waiting for the flag of re-opening to drop, bringing about a forecasted seven percent growth, while asset inflation is skyrocketing because “we are printing too much money.”

“Ride the airplane, but in the seat closest to the exit,” Novogratz said, pointing out that the place of bitcoin in a portfolio is as a hedge against the possible consequences of an extraordinary level of stimulus from ‘infinity Fed’, not a prediction about what’s to come. 

“If it gets to $1 million per coin, it’s because stuff has gotten really bad here,” he said. 

As for Gen Z, they see the system as rigged and structural inequality at all time highs, Novogratz believes recalling how he saw plenty of  “Eat the Rich” signs at Black Lives Matter rallies in the wake of the death of George Floyd. This same anger at an unfair system, he said, manifested itself during the Capitol Hill protest, and, more recently, the attack on short sellers that had GameStop in their sights

“Corporations need to listen and put a bit of bitcoin on the balance sheet,” he said, guessing that Tesla probably made more money in the last month holding bitcoin than it took as profit selling cars in the last two years.  

As for what’s next, Novogratz said that bitcoin is getting ready to “blow through gold” as its simply a better version of it.  

“Paradigms don’t get replaced. They explode,” he said.

Then there’s the power of blockchain, the property that makes it better than gold. The businesses that are going to be built on top of this “giant supercomputer” are going to make traditional financial institutions like Canaccord and Bank of America nervous. 

“Bitcoin has gone viral and we’ve crossed the point of no return as a macro asset,” he said.

Tags

Upcoming Events

MON - WED, MARCH 18 - 20, 2024

Blockworks’ Digital Asset Summit (DAS) will take place March 18-20, 2024 at The Hilton London Metropole. Why London? Momentum. London has become one of the world’s hottest crypto hubs. Innovation is thriving, new institutional investors are flocking in, and regulators like […]

recent research

l1 cover.png

Research

This analysis focuses on financial metrics for general-purpose L1 blockchains. In many ways, L1s should be viewed as an entirely new asset class more comparable to digital economies than traditional businesses. L1s are the core infrastructure enabling the creation of new-age businesses like onchain protocols.

article-image

DeFi innovations are aimed straight at the juggernauts, Blockchain Capital’s Larsen says

article-image

Bankman-Fried appeared in federal court in Manhattan Tuesday to kick off the jury selection process for his trial

article-image

These new tools mark the first steps towards Chainlink’s vision of creating a decentralized computing marketplace for developers

article-image

Amanda Fabiano spent the last three years at the crypto firm after leading Fidelity Investments’ efforts in the mining segment

article-image

The Web3 telecommunications company is rolling out plug-and-play hotspots that Miami residents can purchase for $250

article-image

The latest system will comprise three components, a fault-proof program, a fault-proof virtual machine and a dispute game protocol