Search Inside Bitcoins

AI is The Real Threat, Not Crypto: CEO Galaxy Digital

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.


Join Our Telegram channel to stay up to date on breaking news coverage

  • What – Mike Novogratz, Galaxy Digital’s CEO, has expressed concern over the government’s emphasis on regulating cryptocurrency instead of artificial intelligence (AI). 
  • Why – Novogratz is alarmed by the rapid development of AI and believes that it poses a greater threat, such as creating a “deep fake” identity crisis. 
  • What Next – He is calling for a change in regulatory priorities to address the potential risks associated with AI.

During the Fourth Quarter 2022 Shareholder Update Conference Call held on March 28, the platform’s chief executive, Mike Novogratz, addressed various critical issues affecting the industry. Novogratz shared his insights on the current state of the market and the challenges it faces, including the fall of the once-powerful crypto trading exchange FTX and the ongoing U.S. banking crisis. The call provided shareholders with valuable insights into the company’s strategic direction as regulatory pressure continues to mount.

One of the most notable moments from the call, as seen in the transcript, was Novogratz’s surprise at the level of regulatory scrutiny being placed on the cryptocurrency industry rather than on artificial intelligence (AI). He argued that the U.S. government had misplaced priorities, with AI posing a far greater threat to society than digital assets.

“When I think about AI, it shocks me that we’re talking so much about crypto regulation and nothing about AI regulation. I mean, I think the government’s got it completely upside-down.”

Despite the industry’s challenges, Novogratz remained optimistic about cryptocurrency’s future, its potential to revolutionize the financial world, and tackling the threats the AI poses. He further said:

“Crypto and blockchain are going to have a huge role in that. It is dumb to think we should cache this industry because of Sam Bankman-Fried in his Bermuda shorts, period.”

Blockchain is the Solution to AI-related Deep Fake Fears

Despite his concerns about AI, Novogratz remains hopeful about the potential of blockchain-based applications to help address some of the challenges presented by AI.

Many experts agree that blockchain-based applications can play a critical role in mitigating these issues. 

By providing a secure and decentralized method for storing and sharing data, blockchain technology can help ensure that AI algorithms are transparent, accountable, and reliable. This could alleviate concerns about bias, privacy, and the potential misuse of AI.

In addition, smart contracts based on the blockchain can automate intricate processes, reducing the requirement for human involvement and minimizing the likelihood of mistakes.

With the ability to revolutionize a wide range of industries, it is evident that blockchain technology will have an increasingly vital role to play in shaping the future of AI.

Reasons Behind Crypto Market’s Rebound in 2023 

Commenting on the current market’s recovery, Novogratz believes that two main factors have helped contributed significantly to the crypto industry’s impressive recovery in 2023. In his view, “seller exhaustion” and China’s reopening triggered the market to rebound significantly. In his words:

“All the selling that needed to get done got done, right? There was so much bad news, if you had to sell, panic selling, and just the nervousness of “Oh my God! This thing could go to zero,” and people were in sheer panic, you had seller’s exhaustion.”

In the wake of the Chinese government’s strict zero-COVID policy, Novogratz observed a surge in crypto activity emanating from China.

“China took the regulatory boot off the necks of their tech companies, and that includes crypto, [so] you’re seeing more activity from Asia.”

From a more technical standpoint, the CEO believes that the crypto market is going to see an upward trend throughout the ongoing year of 2023. He said:

“The market feels strong, and when I look at it technically on charts, we’ve had big weekly closes. I’m surprised to hear myself say this, given where my mindset was in late December, but it would not surprise me if we were substantially higher three months, six months, nine months from now.”

Besides this, the crypto market’s impressive recovery also positively impacted Galaxy’s balance sheet. While the platform experienced a major loss the previous year, its recent quarterly results show that the firm has now returned to profitability. 

During the call, Novogratz was also questioned about his main issue with the U.S. Securities and Exchange Commission’s (SEC) pushback. He answered the question by identifying the regulators and SEC Chair Gary Gensler’s inconsistent stance on what qualifies as a security and what does not. 

The CEO also blames the SEC for the current impasse between industry players and regulators, as they have failed to clearly specify or highlight the distinguishing features that classify a crypto asset as a security. To make the industry flourish, he said:

“You need really smart people thinking about how do you take this new industry, create a set of rules that allows legitimate players to forge this industry in the U.S. and grow it.”

Read more: 

PlayDoge (PLAY) - Newest ICO On BNB Chain


  • 2D Virtual Doge Pet
  • Play To Earn Meme Coin Fusion
  • Staking & In-Game Token Rewards
  • SolidProof Audited -

Join Our Telegram channel to stay up to date on breaking news coverage

Read next