$100k milestone for bitcoin represents a paradigm shift, says Galaxy's Mike Novogratz

here now for more I don't know if we should call it a victory lab Mike novag Gratz is the founder and CEO of blockchain company Galaxy and a early early investor in Bitcoin Mike K what's the portfolio statement at this point how much money have you made off of this stuff yeah a lot uh listen you know more important than the money there's been a group of people for really 15 years that have tried to birth this asset into into existence and it's just a time to you know pause and recognize that it's a a

community that got together that decided they were going to store their hard-earned worth in this technology and you know if Satoshi was alive because I don't think he is uh I'm sure he'd have a big smile on his face uh it was a great technology but it's really the social construct that people learn to understand it and trust each other yeah and so in a lot of ways this is the greatest example of a a broad-based of people coming together to do something really spectacular there and so I think before we talk about price I

just want to recognize the moment because $2 trillion asset in 15 years coming out of a guy's idea is pretty thinging spectacular it is and I think for there's a generational significance here as well many of the people who have made a lot of money in this are on the younger side and maybe you look at what's you know good luck trying to get into real estate good luck with the stock market you know this is a protocol that really has kind of minted a new generation of millionaires and maybe more at this point a

lot of people Al also who have been you know kind of the real buyers have sticky hands or whatever you want to call it I mean there's people I know and who you know who have made a lot of money on this and they still insist they are never selling why is that why is that people yes do you think that's still true a belief system for people right it's it's a belief belief system more so even than a financial asset for a lot of people uh that said you know I was on the phone

with one of the great macro investors in the world and we were discussing we might have just seen in the last three months the single greatest wealth gain for 25 to 45 year olds in history right because they have a lot of their money in crypto you've had crypto broadly double or more depending on which collection of coins you own and what impact that'll have on the economy right in general 22 23% of wealth shocks get spent in consumption and I think you're going to see you know the tables at Miami are going to get

bid back up on the Miami nightclubs and people are going to be buying houses and cars and so uh it'll be interesting to see if the FED has an input of of increase in consumption from this massive wealth gain that a bunch of young people have made oh totally let me ask you still uh you know for the Skeptics Mike and even myself when a neighbor of mine works at coinbase and I remember sitting down with him during Co and he he wrote out the whole that he explained it all and I thought okay I

intellectually understand how this is unique and can be a valid and novel store of value basically but let's remember this was also so created with the idea of it being a unit of of currency a kind of native currency to the internet no one wants to spend it anymore we all want to hold it yeah listen early on it morphed itself from a payments idea to a store of value to digital gold and if you just simply think of this as the new generation's gold uh it is a store of value it will go up

when people want it it will go down when people say we don't need it uh you know right now there's a froth frenzy around buying buying Bitcoin all around the world it's one of the first Global assets uh but there is so much leverage in the system right the basis what it costs to fund long positions is as wide as I've ever seen it and so will it last to the end of the year I think so could it last to the inauguration I think so but I can guarantee all your listeners there will be

at least one if not two vicious retracements which will test your SK test your soul right when there's that much Leverage the system it it it it it washes it out um the bigger question is you know why did I call this a paradigm shift the reason I called it a paradigm shift is we had four years of horrible um regulation and and an Administration that really didn't want to promote digital assets Bitcoin or any cryptocurrency in America and America literally leads the world in regulation if we don't if it doesn't work here it it's

very hard for it to work elsewhere um and we have a president now uh like him or not he is great for the crypto industry he has said early on he was going to be a crypto president a Bitcoin president he's got a cabinet full of Believers full of people that are long crypto and so I think you can see with the the the choice of the SEC chair uh we are going to have a much different regulatory uh environment and that's going to allow Innovation it's could allow uh trade fi you know the the

city banks of the world and everyone else to to participate uh in this in this new asset class and you know it's tough because you can see a oneand man it feels very frothy and leveraged a lot of the stocks feel expensive on the other hand it feels like the rest of the world is just going to get it you know the the traditional world is just going to get a chance to play exactly