It should be noted that the cryptocurrency industry is currently in a bearish trend, i.e. in a prolonged decline phase. And while such periods are quite painful, they are necessary for a sort of niche reset and the onset of a new bullrun – at least that’s what happened previously.

Buying cryptocurrencies

In addition, as Messari CEO Ryan Selkis recently pointed out, the current part of the market cycle is particularly good for attracting new talent into the world of decentralised assets. You can read more of his point of view here.

What will happen to cryptocurrencies in the future?

To prove his point, Novogratz mentioned the 2017 crypto market bull run, when Bitcoin rose from $1,000 to $20,000 in a matter of months. According to the head of Galaxy Digital, this was primarily due to the hype on the topic of the younger generations’ distrust of government and desire for decentralisation. Here’s a rejoinder from a prominent member of the cryptocurrency community, in which he shares a point of view.

This was the global revolution of the zoomer and millennial generation. A great story to attract amateurs to the industry.

That is, Michael believes that the period of a certain theme for further influx of people into the coin industry is over. Ordinary users will now be interested in digital assets because of the benefits that blockchain platform users can reap.

Galaxy Digital CEO Mike Novogratz

The next peak on the Bitcoin chart was set in November 2021 – when the main cryptocurrency peaked at $69,000. This bull run, according to Novogratz, was a direct consequence of the COVID-19 pandemic, which triggered people to minimise activity outside of their own homes, the ability to save money and spend it for investment.

The rise of BTC “was 80 per cent driven by the hype and 20 per cent by the real utility” of cryptocurrencies, Michael believes. He also talks about the rapid pace of digitalisation of different areas of life due to quarantine in many countries around the world.

Current rates of cryptocurrencies today

The next wave of cryptocurrency growth will be equally argued by both the new hype and the real utility of digital assets. Here’s one of Novogratz’s quotes on the subject, published by news outlet Cointelegraph

It all depends on people creating decentralised applications and systems that can be fast and scalable and user-friendly. They don’t exist yet – that’s why we are where we are. But they will emerge in the next few years.

Why Michael talks about a lack of fast systems is unclear. At the very least, the Solana network can already handle several thousand transactions per second. And that is hundreds of times more than the equivalent of the same blockchain of Etherium, whose native cryptocurrency is now the second-largest in terms of market capitalisation among all coins.

Mike Novogratz is also confident that the crypto industry is “simply destined” for success. The only thing left to do is to wait for its infrastructure development and the aforementioned emergence of real application cases for crypto. However, the Galaxy Digital CEO’s predictions do not always come true: recall that earlier he openly supported Terra and even boasted of tattooing the startup’s token on his arm.

Mike Novogratz’s tattoo of LUNA

As you may recall, Terra suffered a real collapse this spring, with the project’s ecosystem completely devalued and its founder Do Kwon eventually seemingly even on the run.

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Not only does the crypto market need acceptance, but also approval from many financial regulators around the world. Fortunately, there’s progress on this issue too: the day before, the popular crypto platform Crypto.com received an important approval from the local regulator in France. This is a licence to register as a digital asset service provider from the stock market regulator Autorité des Marchés Financiers (AMF). The approval comes after the platform was approved by another local organisation, Contrôle Prudentiel et de Résolution (ACPR).

The regulator’s approval will enable Crypto.com to offer customers in France a range of products and services in accordance with local legislation. The platform also hopes to significantly expand its presence in Europe. Crypto.com has previously managed to obtain an impressive number of regulatory licenses in North America and Asia.

Crypto.com

In July 2022, Crypto.com managed to get two more regulatory approvals in Europe – in Cyprus and Italy. In August, the platform also received a green light from UK regulators for “certain activities”. It looks like Crypto.com will be able to attract a notable number of new users in the near future.


We believe that in the next bull run, the cryptocurrency industry will in any case predominantly attract newcomers with a speculative component, i.e. the opportunity to make money. We also expect new trends, which in 2020 will be decentralised finance and revenue pharming, and in 2021 will be NFT tokens. Over time, however, blockchain platforms do bring more value to ordinary people. So in terms of usefulness, Novogratz is definitely not wrong.


What do you think about this? Share your opinion in our Millionaires Crypto Chat. There we will discuss other important developments related to the blockchain and decentralisation industry.