Government Should Fear AI, not Crypto: Galaxy Digital CEO
Mike Novogratz, CEO of Galaxy Digital, believes regulators are unwilling to regulate cryptocurrencies and artificial intelligence.
Among other things, Mike Novogratz, CEO of Galaxy Digital, said he was shocked by the number of regulatory actions taken against cryptocurrencies compared to artificial intelligence. The technology he believes will cause a “deep fake” identity crisis.
Key Takeaways:
- A “deep fake” identity crisis is creating a risk of artificial intelligence not being properly regulated, says Mike Novogratz, CEO of Galaxy Digital.
- Regulating cryptocurrencies compared to AI has been “completely turned upside down” by the U.S. government.
- Cryptocurrency will play a significant role in addressing some of the problems posed by AI.
- Galaxy Digital’s balance sheet reflects the strong recovery of the crypto market, according to Novogratz.
- Asia is becoming more active in the crypto market due to Chinese deregulation.
During the company’s fourth-quarter earnings call on March 28, the CEO explained that the U.S. government’s focus on cryptocurrency regulation and blindness to AI had “completely turned it upside down.”
“When I think about AI, I am shocked at how much we talk about regulating cryptocurrencies, nothing about regulating AI. I mean, I think the government turned everything upside down. ”
This concern seems to stem from Novogratz’s concern that AI could trigger a “deep fake” identity crisis.
“In many ways, one of the best use cases for cryptocurrency will be identity around AI or because soon you will have fake Mike Novogratz. How do you prove your identity in a world where people are different?” he said.
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However, we believe that blockchain-based applications will “play a major role” in addressing some of the problems posed by AI.
“Cryptocurrency and blockchain will play a big role in this. It is silly to think that this industry should be kept under wraps in Sam Bankman-Fried Bermuda pants.”
However, the U.S. Commodity Futures Trading Commission recently discussed AI and its implications with its Technical Advisory Board.
Vendor Exhaustion, Mitigation In China
Commenting on the current state of the market, Novogratz said that “sellers are exhausted” and that China’s reopening will see the crypto industry make a remarkable recovery in 2023.
“You did all sales you had to do, didn’t you? There was much bad news when you had to sell. This could be zero, and people were completely panicked and the sales Man was exhausted.” He said.
Following the Chinese government’s strict zero-COVID approach, Novogratz said he has noticed more crypto activity out of China since then.
“As China deregulates from tech companies, which includes cryptocurrencies, we are seeing more activity from Asia.”
From a more technical point of view, Novogratz was confident that the crypto market would remain bullish until the end of 2023:
The market is strong, technically on charts it’s closing great week after week. I’m surprised to hear myself say that given my mindset at the end of December but 3 months It wouldn’t be surprising if it increased significantly at 6 and 9 months.
The strong recovery in the crypto market is also reflected in Galaxy’s balance sheet or which announced today’s quarterly results that it has finally returned to profitability after suffering a $1 billion loss in 2022.