The CEO and founder of Galaxy Digital – the full-service cryptocurrency merchant bank – named Michael Novogratz, argued that Bitcoin can’t change the world because it is only a currency, which just serves as an MoE or medium-of-exchange, and SoV or store-of-value.
BTC and gold are social constructs
Michael Novogratz, who commented at the time of the Ethereal Summit of ConsenSys on the 11th of May, 2019, pointed out that BTC established itself as SoV and that it is also kind of finished when it comes to having more use cases.
The previous partner at Goldman Sachs has made a comparison between the pseudonymous crypto and other asset classes, including the gold bullion. According to the founder, both BTC and gold can be said to be social constructs.
Even though the graduate at the University of Princeton considers Bitcoin to be digital gold, he also believes that it is actually limited to being used as the means to exchange value. As a result of this, Novogratz believes that the most dominant crypto in the world will not change the world at all.
BTC will not change the world, but Web 3.0 will
One evolving set of standards and protocols for the new, as well as more technologically advanced world wide web, the so-called Web 3.0, has the potential to transform how business is actually conducted and it may even drastically improve how people interact. According to Novogratz, the Web 3.0 is a decentralized platform used for processing information.
He also added that Web 3.0 protocols are going to have the ability to separate retrieval and data storage from information processing and that the public blockchains line Ethereum is going to have a vital role in the future economy.
But, Novogratz also mentioned that there are many other smart contract platforms which are providing some exciting and effective solutions which are similar to what ETH offers.
Altcoins have to prove themselves
Making a comparison between the thousands of digital assets and the periodic table of elements, in chemistry, Novogratz also argued that Altcoins have still not established their market value because they still have to prove themselves.
The cryptocurrency entrepreneur even mentioned that there is no one building anything on the Litecoin blockchain, but there are a lot of different applications which are built on the ETH or Ethereum network.
At the time of the SALT Conference which was held in Nevada, Las Vegas, on the 9th of May, 2019, the CEO even stated that the price of BTC is most likely going to return to its previous all-time high of almost $20,000. But, he also cautioned that more damaging events like the large-scale security breach suffered in recent times by cryptocurrency exchange Binance, and they could potentially cause the price of Bitcoin to plummet.