Michael Novogratz: Bitcoin became a drug, but it ended

In a conversation with Bloomberg, a cryptocurrency investor and CEO of Galaxy Digital, Mike Novogratz, compared Bitcoin with a drug, and the current market situation with a "methadone clinic".

During the interview, the journalist asked how the previous experience on Wall Street distinguishes Novogratz from the majority of representatives of the cryptocurrency community, who believe in cryptocurrency, as if this is a "new religion". The enthusiast stressed that although he believes in the technology behind cryptocurrencies, "when prices become ridiculous," he sells.

In addition, Mike Novogratz compared Bitcoin during abnormal growth at the end of 2017 with a drug. Moreover, all this period he called "speculative mania." At the same time, according to him, now the participants of the cryptocurrency community "are more sober, because the drug is gone."

Novogratz noted that the current market can be characterized by the word "pessimism", and its participants are afraid of everything, including the fact that Bitcoin will drop to zero. However, the head of Galaxy Digital is sure:

"But it's [Bitcoin] not going to zero. We're at the methadone clinic."

The hedge fund manager told me what he thought about $ 6,200 as the lowest point of the Bitcoin price. And the price really lingered there. "But then Bitcoin Cash decided to split up, and then the SEC imposed sanctions on several ICOs. Besides, SEC allowed investors to try to sue their losses from companies. " This, according to Novogratz, scared many people.

"The ICO market is pretty much dead right now." He added however that "the SEC doesn't want to kill this innovation" and that he expects a market for regulated security tokens in the United States.

A cryptocurrency enthusiast reiterated the popular idea that bitcoin will become a new digital gold.

"That means [Bitcoin is] the only one of the coins out there that gets to be a legal pyramid scheme. Just like gold is. All the gold ever mined in the history of the world fits in an Olympic-size swimming pool. You're out of your mind to think that pool's worth $8 trillion. But it is because we say it is," Novogratz stressed.

Earlier, Mike Novogratz expressed the opinion that this year the market put everything in its place. He said that his company, founded as a cryptocurrency trading bank, is currently experiencing difficulties that are not typical of such organizations in the field of traditional finance.