During an interview, Mike Novogratz, the Founder and CEO of Galaxy Digital, acknowledged his previous skepticism about XRP and expressed a shift in his perspective. He admitted, “I’ve been dead wrong.”
Ripple’s Evolution and the XRP Army
Despite his initial doubts, Novogratz now recognizes Ripple as a prominent institution and acknowledges the existence of the XRP Army. He commented, “They care about their ecosystem and their coin.”
Novogratz compares the use case of XRP to Bitcoin, stating that both serve as a store of value. He believes that XRP provides an alternative for those looking to safeguard their wealth.
The Value of Altcoins as a Form of Bitcoin
Regarding altcoins, Novogratz asserts that they are essentially a variation of Bitcoin. He emphasizes that the majority of their value lies in being a store of value, just like Bitcoin. Investors perceive altcoins as assets that will retain their worth over time.
Previously, Novogratz believed that cryptocurrencies needed utility to hold value, distinguishing Bitcoin as the only valuable asset. However, he now realizes that altcoins like Solana, Ethereum, and Doge also possess store of value characteristics.
“Where I was wrong is, all of these cryptos are in some way a form of Bitcoin at this point,” explained Novogratz. “These ETFs and these new inflows are buying time for any utility that we’ll see in the future to get built. But most of the value in Solana, Ethereum, or Doge is store value.”
Novogratz highlights the current crypto market as a “narrative game” where companies and issuers rely on storytelling to attract consumers and investors. However, he anticipates a shift in the future towards establishing a robust financial market with proper regulatory infrastructure.
