Novogratz: The government’s regulation on crypto is upside-down
Mike Novogratz of Galaxy Digital believes that the government should be looking to regulate artificial intelligence and rely on blockchain...
Bill Ackman, one of the prominent hedge funds in the United States, has commented on the place cryptocurrency holds in investment, remaining bullish about the industry. Despite the turmoil cryptocurrency has faced in the past month with the crash of FTX and the trust lost in exchanges and centralised systems, Ackman believes that cryptocurrency – like Bitcoin and other digital assets – is here to stay regardless of the current state.
In a Twitter thread, the billionaire investor and CEO of Pershing Square Capital Management noted that he was a crypto skeptic, but has since come to believe that cryptocurrency offers the potential to enable the formation of useful businesses technologies that could not be created previously.
The telephone, the internet, and crypto share one thing in common. Each technology improves on the next in terms of its ability to facilitate fraud. As such, I was initially a crypto skeptic, but after studying some of the more interesting crypto projects, I have come to
— Bill Ackman (@BillAckman) November 20, 2022
Looking at the earlier technologies like the mobile phone and the internet, there is initial criticism and resistance, as noted by Ackman, but there is possible future in the technology. With the recent challenges from the FTX saga, there is a need to increase regulatory oversight to remove fraudulent actors and malicious entities in the space.
In his thread, he noted that the space holds opportunities but requires sensible regulation to tap into the potential:
“Despite crypto’s ability to facilitate fraud, with the benefit of sensible regulation and oversight, crypto technology’s potential for beneficent societal impact may eventually compare with the impact of the telephone and internet on the economy and society.”
Currently, according to Ackman, there are too many opportunities for fraudulent entities to create tokens that can act as pump-and-dump assets that harm both investors and the industry. He continued to state that genuine participants in crypto should be incentivised to expose fraudulent schemes. Not only would this help advance the industry, but it would be a way to protect investors and project owners in the future.