“Restructuring of cryptocurrencies is going to take place soon. Only popular coins will be able to survive while cryptocurrencies with low utility will start to go away. Also, it seems that application of cryptocurrencies will expand towards other areas such as real estate, security, and distribution.”
CEO Michael Novogratz of Galaxy Digital Capital, who is considered as the ‘father of cryptocurrency’, predicted restructuring of cryptocurrency markets in the near future.
He started receiving spotlight after predicting that Bitcoin price will fall below $8,000 and when this prediction came true.
“Reasons for drop in Bitcoin price are strict regulations by financial authorities and fallout of few investors who were introduced as speculators.” said CEO Michael Novogratz. “Authorities from different countries have started to ease their regulations on cryptocurrency.”
He emphasized that it is important to create clear guidelines for cryptocurrency rather than excessive regulations as cryptocurrency market has gone through loss of large-scale investors, hacking incidences, and prohibition of ICO (Initial Coin Offering).
He partnered up with Bloomberg and created cryptocurrency index called Bloomberg Galaxy Crypto Index.
“I am one of people who invested into EOS.” said CEO Michael Novogratz. “We are preparing various businesses by using platforms related to EOS.”
EOS is a platform lead by 21 block producers (BP) and it boasts faster information processing speed than Ethereum.
“If EOS settles itself after going through stable system upgrades, it will become a project that will represent blockchain.” said CEO Novograz. “It will be able to process 50,000 cases of information per second within few months.”
Regarding a rumor that Galaxy Digital Capital is preparing to set up a crypto-bank based on EOS, CEO Novogratz responded by saying that he is looking into many options.
He also made his position towards regulations known.
“Institutional investors investing into cryptocurrencies has become a trend.” said CEO Novogratz. “Each government must actively improve its system so that ICO companies can attract investments from institutional investors.” He also made an advice by saying that it is positive to see that authorities are starting to listen to opinions on cryptocurrency and that it is necessary for authorities to establish new regulations after gathering various opinions.
He also said that it is time for appearance of ‘killer apps’ by comparing blockchain to TV.
He is indicating that blockchain ecosystem will be able to expand even further as there are more services that can be used by different people.
“Just like how people are not paying much attention to fundamental technologies of a TV when they watch TVs, consumers are not much interested on how blockchain works as it is operated through single infrastructure.” said CEO Novogratz. He is claiming that people will use blockchain-based services as long as they are useful and not be too concerned about whether they are based on blockchain.
He is emphasizing that people should invest into cryptocurrency now and that they will not succeed in their investments if they just continue to wait. However, he advised that people should set up principles towards investments in cryptocurrency.
Staff Reporter Gil, Jaeshik | osolgil@etnews.com