Longtime cryptocurrency bull Mike Novogratz stressed Tuesday that bitcoin and dogecoin, while both have staged strong rallies this year, are very different in design and in their risk profiles.
Bitcoin was launched in 2009 and it’s grown in fits and starts into the world’s biggest digital currency. On the other hand, dogecoin was started as a joke in 2013, but it’s skyrocketed this year as a so-called meme trade on social media hype, including favorable comments from billionaire Tesla CEO Elon Musk and other celebrities.
Novogratz, founder and CEO of Galaxy Digital, a crypto-focused financial services company, told CNBC’s “Squawk Box” that bitcoin is “a well-thought-out, well-distributed store of value that’s lasted for 12 years and is growing in adoption, where dogecoin literally has two guys that own 30% of the entire supply.” There also are “tens of billions of dollars” of capital expenditures and operating expenses put into the bitcoin ecosystem every year that just aren’t there for dogecoin, he added.
Bitcoin has been on a tear in recent months, more than doubling in 2021 to an all-time high of nearly $65,000 per coin last week before a sharp decline over the weekend. Bitcoin, which accounts for over half of the more than $2 trillion market value of all cryptocurrencies put together, was around $56,000 on Tuesday. As recently as October, it traded below $11,000 per coin.