Forget Bitcoin, BlackRock CEO Larry Fink suggests that tokenization could be the next big trend in the crypto market. Mike Novogratz, founder of Galaxy Digital, suggests that now is the time to buy Bitcoin.
The next big thing in the crypto market!
According to Larry Fink, CEO of $10 trillion asset management giant like BlackRock, Bitcoin made headlines only as a distraction. Fink argues that because of Bitcoin, the media is hiding other interesting developments in the cryptocurrency space. From this point of view, Fink draws attention to the striking developments in digital payments in emerging markets such as Brazil and parts of Africa. He compares them to the slow pace of innovation in developed markets such as the US, where the cost of payments remains high.
The BlackRock president sees an opportunity in the digital assets space where underlying technologies can improve the efficiency of capital markets, shorten value chains and increase accessibility for investors. According to Fink, the division of asset categories into tokens presents a very encouraging possibility. He states that Blackrock is actively exploring the realm of digital assets, with an emphasis on permissioned blockchains and the conversion of stocks and bonds into tokens.
However, Fink acknowledges that there is still no regulatory clarity as the industry matures. It reassures investors that they will apply the same standards and controls they apply to their business to crypto. In the meantime, let’s remind you that Fink recently predicted that most crypto companies will fail when they hit a peak. As we reported on Kriptokoin.com, the BlackRock boss also revealed that BlackRock deposited $24 million on the defunct FTX exchange, but later had to reduce this amount to zero.
Mike Novogratz: It’s time to buy Bitcoin!
In an interview with CNBC on March 15, Galaxy Digital founder Mike Novogratz compared current market conditions to December 2018, when the Federal Reserve’s rate hike plunged markets into turmoil. Novogratz argues that the recent slump in the commodity market, particularly the oil market, indicates that the United States and the world are heading towards a recession and a credit crisis.
The founder of Galaxy Digital predicts that Fed Chairman Jerome Powell will soon have to halt or even lower interest rates. Ultimately, this could lead to a significant shift in psychology that could benefit Bitcoin and Ethereum. Novogratz comments:
If there was ever a time to be in bitcoin and crypto, that’s why it was created. Governments print too much money when the pain gets too big. And we see this. The current banking crisis in the US has contributed to the rising price of Bitcoin as it is seen as a safe-haven asset.
The decentralized and censorship-resistant nature of Bitcoin came to the fore after the collapse of Silicon Valley Bank (SVB), which has been likened to the 2013 Cyprus crisis. In response, the US federal government intervened to reassure customers that their deposits are safe and prevent depositors from withdrawing their money from smaller lenders.
Novogratz also expresses concerns about the contagion effect on the banking system. He predicts that if the Fed doesn’t take further steps to secure deposits, people will learn their lesson and move towards the big four or five depository institutions. He argues that Congress and the Fed need to do something more dramatic about deposits or there will be continued pressure on regional banks and the entire system.
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