SNL skit where he called Dogecoin “a hustle”, sending the coin’s price down by 30% on the same night.
According to Novogratz, this is an embodiment of something bigger than Musk: it’s a response borne out of people’s frustration with the current monetary policy in the US. While he advises his clients to steer clear of “frivolous” cryptocurrency projects, the fact that communities are banding together is something to be optimistic about. Cryptocurrency price fluctuations and market corrections are to be expected.
On the other end of the spectrum: while Ethereum’s “triple whammy”, (i.e., DeFi, payment coins, and NFTs) might, at first glance, signal a positive prediction for Ethereum value, Novogratz said that it will be healthy if Ether’s prices stabilized at its currency prices.
Why it Matters: While Novogratz acknowledged Musk’s concerns about Bitcoin’s environmental impact, he said that dismissing the coin altogether is a bit rash. “Youtube uses 2.5% of total electricity. We think about that, we’re not gonna say, hey, let’s stop using Youtube. We use electricity for things that we think provide a tremendous amount of value,” he said, maintaining a middle-ground stance on Bitcoin.
With all of that being said, Novogratz was more positive about Bitcoin’s future. “I think they’re gonna see a response from this industry, like you see a response from every industry, to say hey, in this gap of time before all electricity is green which I think is 7 – 8 years away, we should do something to offset our footprints. That’s in banking. It’s in crypto. It’s in tech, it’s in industrial businesses.”