Billionaire says Merge will attract money to Ethereum

Last Updated: 12 August 2022

We have often written about billionaire Mike Novogratz, the CEO of cryptocurrency investment firm Galaxy Digital. He often makes statements about bitcoin, mainly about the price, which are not too modest. Yesterday, he came up with another such statement, but not about bitcoin, but about the market’s number two: ethereum.

Proof of Stake will be very good

Despite the fact that Novogratz mainly speaks out about bitcoin, he also has a good word to say about Ethereum. Namely, he thinks the Merge – which will change Ethereum from the Proof of Work (PoW) to the Proof of Stake (PoS) algorithm – would be very good for the network.

“You’re going to see an imbalance between supply and demand in ethereum really shift,” Novogratz told CNBC’s Squawk Box. “The enthusiasm that this merger is finally happening is going to draw money into ethereum.”

“This Merge is a big deal: it takes the supply of mining, which used to be sold constantly, and actually turns it into Hodlers and long-term contracts.” So, according to him, this would be very positive, as investors and old ethereum miners would rather hold on to their ETH, rather than want to sell it.

Other statements

This is not the first time this billionaire has made such wild statements. It is already amazing that he has not put a price tag on it. Not even a month ago, he told us that bitcoin would undoubtedly reach $500,000 in the next five years. And the reasons would be the unique features and adoption rate of the largest digital currency.

Novogratz has made predictions more often in the past. Some of them came true, and others did not. It is striking that his predictions often match the price, but not exactly the time. In fact, he previously predicted – in 2019 – that bitcoin would reach $20,000 within a year and a half. He was proved right, but reality differed from his prediction by 1 month.

So perhaps the price of Ethereum will go up after the Merge, but this could take a very long time. It is also worth mentioning that Novogratz has a Terra (LUNA) tattoo on his upper arm. Yes, he does:

Author

  • Steven Gray is a journalist with a heart for crypto. He filters the wide range of news and ensures that it reaches the public in a comprehensible way. He often does this with the support of technical analysis.

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