Novogratz: BTC Is for Storing Value, Not for Payments

Tuesday 27 October 2020, 7:46 AM AEST - 1 month ago

Mike Novogratz can be a hard man to read. As a billionaire investor and former ex-hedge fund manager, the man has had a lot of positive things to say about bitcoin, going so far as to compare the asset to gold. However, while he thinks very highly of bitcoin, he doesnt see it being used as a legitimate currency anytime soon.

Mike Novogratz: BTC Wont Be Used for Payments Regularly

While there are retailers and companies out there that accept crypto and bitcoin payments, they are certainly not the norm. Its not like you can walk into a Target or Sears somewhere right now and say to the cashier, Hey! Ill buy this lawnmower or this cooking pot with bitcoin. It doesnt work this way because most mainstream stores and chains out there have turned their backs on crypto, and to an extent, we can understand why.

Its not that they dont like crypto. Its just that they cant take a chance theyll miss out on profits. Someone can go in and buy a $100 item for bitcoin. The next day, the price of BTC goes down and that $100 turns into $70. While the customer still gets to walk away and keep what they purchased, the store just lost $30. Its not entirely fair, and while it kicks bitcoin enthusiasts to the curb, the idea of not accepting crypto payments – at least for the time being – should at least be forgivable to most.

Novogratz says it will likely be a while before bitcoin is used regularly as a form of payment. He does, however, believe that more consumers and traders out there are viewing bitcoin as a store of value, and that theyre using it to strengthen their portfolios and keep their wealth strong and manageable during these strange times. He comments:

I dont think bitcoin is going to be used as a transactional currency anytime in the next five years. Bitcoin is being used as a store of value.

Hes also confident that the currency is going to continue to grow in both size and scope granted more people see it this way. So long as people continue to see bitcoin in this new light, the price of the asset will keep getting higher. He says:

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