“Bitcoin Is Not Ideal For Payments” • Coinexc

Mike Novogratz, a billionaire investor and former hedge fund manager, stated that the world’s most valuable digital currency is not an ideal method for payments.

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Mike Novogratz said that Bitcoin (BTC) will not be used as a form of payment because the network cannot support thousands of transactions. In an episode of the Exchanges at Goldman Sachs podcast, Galaxy Digital Holdings CEO sees Bitcoin’s use case as a store of value and asset class, not a new form of payment:

“Bitcoin will not be a payment method. The system is not really set up for payments. Not fast enough for thousands of transactions.”

As the volatility of Bitcoin scares shops and companies, the idea that Bitcoin will be used as a means of payment for products and services in the future is slowly disappearing. Instead, the idea of ​​using Bitcoin as an investment tool began to dominate.

In fact, Satoshi Nakamoto, the mysterious creator of Bitcoin, defined Bitcoin as a peer-to-peer digital currency in a document published in 2008. However, crypto investors like Novogratz believe that in the future other digital currencies will take on the role of payment and Bitcoin will become more like digital gold.

Sees Bitcoin as a Store of Value

Novogratz believes that in the future, Bitcoin will serve as the ultimate hedge fund. He believes it will work as a store of value comparable to gold, and in the event of economic turmoil, such as during the coronavirus outbreak last year, many people will turn to it to keep their portfolios solid and their wealth stable and secure:

“What makes stores of value unique is that they are social constructs. It has value because we say it exists. There has never been a more successful brand created by the community every 12 years. Society raised this baby and it is now worth around $1 trillion.”

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