- Novogratz gives two reasons for Dogecoin’s growth.
- He adds that no coins can be as successful as Bitcoin.
- Many banks are building an asset channel for crypto.
Michael Novogratz, CEO of Galaxy Digital Holdings Ltd., recently discussed the capability of cryptocurrencies, such as Dogecoin, and their process of converting the financial system and beyond with Goldman Sachs. His remarks were released in a Goldman Sachs report titled “Crypto: A New Asset Class?”Crypto: A New Asset Class?” on May 21st.
Novogratz was asked about his thoughts on Dogecoin and meme coins. He replied saying that dogecoin has no long-term viability and thus he doubts the future of Dogecoin
Moreover, he adds that there have been two reasons for Dogecoin’s growth. He answers that the first reason is tribalism among investors. More so, he recalls Gamestop’s rise, which was fueled by some young investors empowered through trading apps and social media platforms.
Additionally, he compares Dogecoin with Gamestop that one day these will be vanished. He continued saying some crypto assets like Gamestop will have short-term potential but gradually lose their viability.
Besides, he strongly believes in Bitcoin (BTC). Novogratz claims that no coin can be as successful as Bitcoin in a short period of time, and now highly credible individuals accept and recognize it’s potential. As a result, the entire world voted for Bitcoin to be a store of value.
Novogratz concluded with a note saying:
“People are still making strong arguments against it, but every single bank we know is developing a crypto asset channel, 14 companies have Bitcoin ETFs registered with the SEC, and most tech companies incorporate bitcoin into their wallets and interfaces.”
Then, Michael Sonnenshein, CEO of Grayscale Investments answers the question whether meme-currencies are “a blessing or a curse to cryptos”. He gave an epic reply saying that Dogecoin exemplifies how simple it is to create a digital asset. He says that investors examine before investing.
In addition, he explains how it demonstrates the importance of determining whether the asset is profitable and has potential in the real world.
Furthermore, TheNewsCrypto’s Senior Analyst advises against investing in Dogecoin and instead recommends digital assets such as ADA, TRX, and VET.
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