Mike Novogratz: Musk's tweets are just for attention, Bitcoin's value comes from consensus

Billionaire investor and Galaxy Digital CEO Mike Novogratz has long been a Bitcoin bull. In a recent CNBC video interview, he mentioned that Bitcoin does not have any value in itself like other fiat currencies. Instead, it has value because the people who use it and invest in it say it has value.

Novogratz believes that “the value of Bitcoin is mainly due to the community it has built. Because people believe in its potential, Bitcoin can now go all the way. If consensus no longer exists, Bitcoin will become useless. The value of Bitcoin does not come from the code, its value comes from people’s recognition.”

He said. "One thing to remember about Bitcoin as a technology is that it's the first digital signature that can't be forged, which means we can hold digital currency safely because if I say there are 21 million, there are only 21 million because you can't forge... You say, well, it sounds like a Ponzi scheme, but everything that has value is a Ponzi scheme of some kind. It's valuable because we bring more people to buy it. Of course, if our government didn't... print money like toilet paper, it might not be as valuable."

In the interview, Novogratz also pointed the finger at Tesla CEO Elon Musk. For a long time, Musk has been accused of controlling the flow and price of Bitcoin through Twitter and social information, and his influence is not always positive. For example, when he announced that Tesla would no longer accept Bitcoin payments, Bitcoin experienced a massive drop.

Novogratz commented, “Musk is a smart and imaginative person, but his Bitcoin tweets do not help the industry at all. Instead, Musk sends these messages because he knows it will get him attention, which can bring considerable benefits to his business empire.”