Hedge Fund Manager Novogratz Concerned About Potential Cryptocurrency Regulation
Michael Novogratz, CEO of Galaxy Investment Partners, said during an interview that he is concerned about Bitcoin's price movements because it might attract more regulation from governments around the world.
The cryptocurrency world has constantly been expanding along with Bitcoin’s unbelievable rise to prominence through this year.
This may be good news for early investors who are now reaping the rewards of their patience, but Bitcoin and other currencies that have recently grown might end up seeing the hammers of governments around the world in the near future.
Michael Novogratz—CEO of Galaxy Investment Partners—shares this concern:
“I've got concern that if price movements go higher we're going to get more regulation,” he said while speaking to CNBC.
“One of the big risks out there right now is that prices are moving so fast that regulators are going to get nervous. I could legitimately see bitcoin go $13,000, $14,000, $20,000, $25,000 and see somebody balk,” he added.
In contrast, Novogratz pointed out how some regulators, including those in the United States, are “intrigued” by cryptocurrency systems.
Indeed, blockchain technology has become the new superstar in government circles as they try to find new ways of making their administrative services more efficient and transparent to the public.
Although his concern is one for the future, there already are countries that have either cracked down on exchanges or banned cryptocurrencies entirely.
“Use of illegal means of payment (including bitcoin and other similar virtual currencies) will be subject to fine of between VND 150 million and 200 million,” the statement by the bank said.
The above sum amounts to just under $9000.
At the beginning of the same month, a member of the European Central Bank’s Governing Council said that cryptocurrencies are “dangerous and deeply dubious.”
The attitude is there, but it is unlikely that governments will be able to do much to stop the flow of cryptocurrencies in their respective countries completely since they operate on a decentralized platform far away from the reach of any regulators.
The most they could do is either make the opening of an exchange very difficult or ban the practice outright. But holders of Bitcoin will still be able to do commerce without much hassle.
Novogratz is still optimistic, saying that “Bitcoin is winning out as digital gold,” despite his belief that “nothing that volatile is going to be a currency.”