China’s crackdown creates a hugely positive path for cryptocurrencies

Galaxy Digital CEO said that despite China’s vandalism, Bitcoin is alive in many ways.

As major miners gradually leave China after the country’s move with Bitcoin (BTC), Mike Novogratz, CEO of Galaxy Digital, has pointed out to other experts that the exodus from China is a positive development.

Novogratz stated on Bloomberg that despite China’s efforts to sabotage Bitcoin – such as the ban on mining, the ban on leverage, and even the ban on Bitcoin in some places – cryptocurrencies survive and thrive. He said:

“Bitcoin is alive and well in many ways, adding that the exodus of miners from China could be a huge benefit to the ecosystem.”

According to Novogratz, a few weeks ago when the cryptocurrency market experienced high volatility with sudden widespread price declines, it was an amazingly successful experiment for the entire crypto ecosystem. Novogratz summed it up, referring to the 65 percent drop in Bitcoin price from its all-time high.

“We had a problem. We don’t have a security team when prices are falling. We have no complaint. How the system works, it should work. It is a very powerful system that was built in a short time. “

Regarding the public perception of the crypto ecosystem, Novogratz pointed out that Bitcoin “found its way” as digital gold. Recalling that gold has been around for 3,000 years, he added:

“I expect Bitcoin to be the digital version of gold for the next 3,000 years.”

Mr. Novogratz communicated this further

“One day, Ethereum could very well become the second largest coin or possibly even the largest cryptocurrency. It is used at the underlying level of trust, Web 3.0, where everything is built on it. “

Also note that it has strong competitors like Terra and Solana and this is not a sure win for Ethereum.

Novogratz also listed more recent additions to the crypto ecosystem like Decentralized Finance (DeFi) and NFTs before closing:

“We’re not playing around with coins with funny names here. This is a serious approach to rebuilding the world’s financial architecture. “

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