Last Updated: 28 May 2021
The CEO of Galaxy Digital, Mike Novogratz, said that he has doubts regarding the future of Dogecoin. His concerns are that no institutions are buying this cryptocurrency, and retail is losing interest too.
Mike Novogratz Thoughts on Dogecoin
The CEO of Galaxy Digital Holdings Ltd, Mike Novogratz, in discussion with Goldman Sachs, has discussed the future of cryptocurrency, including Dogecoin. They also discussed the potential of cryptocurrencies to become a robust financial system. When asked by Novograts about his thoughts on the rise of Dogecoin and other cryptocurrencies, he replied that Dogecoin is a more speculative asset than Bitcoin. It doesn’t have any potential to grow into something big as no companies are investing in it. Moreover, retail will also lose interest.
The CEO of Galaxy Digital said that Dogecoin was started as a joke; there are only two reasons why the currency became popular. The first reason for its popularity is the investing community and the tribalism in it. Young investors who are part of the communities worked on this cryptocurrency via social media platforms which in return increased the popularity of Dogecoin. The second reason for its popularity, according to Mike Novogratz, is the availability of this cryptocurrency almost everywhere. But this is the exact reason for his concerns regarding the future of Dogecoin as more currency developed means less viability.
Other People Thoughts on Dogecoin
Goldman Sachs interviewed another executive regarding the future of Dogecoin. The CEO at Grayscale Investments, Michael Sonnenshein, was asked if the meme cryptocurrency, including Dogecoin, is a good thing for the overall cryptocurrency market or not. He replied that the existence of Dogecoin is proof that creating a cryptocurrency is not a difficult task to do. This is why investors need to understand if cryptocurrency has better use in the real world or not. The cryptocurrency should also have the potential to solve real-world problems.
Mike Novogratz is also a renowned bitcoin investor; he said that bitcoin has proved to be a successful investment as there is no such product that rose to this much fame in this short period. Everyone recognizes Bitcoin in today’s world; many huge names are linked with it, making it safer to say that Bitcoin can be considered an actual store for value. He added that people might not be agreeing with him. Still, it is illogical to think that Bitcoin will lose much of its investors as many banks started recognizing Bitcoin as a legal payment method. Many digital companies are developing wallets to store these assets.
Several people are optimistic about Dogecoin’s future. Elon Musk, the CEO of Tesla, has conducted a poll via his Twitter account in which he asked whether his company should accept Dogecoin payments or not; 78.2% of people voted in favour of it. Moreover, the developers of Dogecoin also revealed that they are working with Elon Musk to make Dogecoin a better and environment-friendly cryptocurrency.