The CEO of Galaxy Digital believes that Bitcoin will not be used as a transactional currency.

In a recent interview for CNBC's Squawk Box, Michael Novogratz, CEO of Galaxy Digital, has shown his mind on the future of Bitcoin as an asset. The CEO thinks that the future Bitcoin will become less volatile as more institutions flood the space and notes that it is already happening.

"I think the volatility in Bitcoin is going down. If you look at Bitcoin vs Ethereum vs other altcoins, the volatility of Bitcoin is much lower," Novogratz commented. He points out that the decrease in volatility is due to investors looking for huge returns in a short time.

The Galaxy Digital executive revealed in the interview that he thinks that Bitcoin will not be used regularly for transactions, but will end up being used primarily as a reserve of cost.

In the interview he mentioned that Bitcoin will not become a transactional currency. He thinks it's more of a cost reserve measure, "Novogratz said. He argues that this will happen regardless of the development of The Lightning Network. Over the years, the Lightning Network has been widely regarded as the answer to the question of whether Bitcoin can truly be used. as currency.

Novogratz also indicated that Bitcoin's energy consumption rates remain out of proportion. He mentioned that the grid uses 0.17% of universal energy, which is less than Christmas lights.

His comments were in response to confirmation that while blockchain technology is here to stay, another blockchain was going to take over Bitcoin's place thanks to its energy crises. He on the other hand he adds that bitcoin miners continue to use more and more green sources of energy.

The ecosystem is buzzing about the potentials of nuclear-powered Bitcoin mining, as El Salvador has taken up the idea of ​​starting to mine Bitcoin with geothermal energy. Ingenious miners also continue to take steps to use flared gas to steal cryptocurrency in what has been described as an energy-efficient process.