Bitcoin Will Become a Digital Gold, Says Mike Novogratz

Bitcoin Will Become a Digital Gold, Says Mike Novogratz

Mike Novogratz spoke to Bloomberg, where he covered the recent developments concerning the cryptocurrency industry. Below you can find a summary of the interview.

  • The “fantastic bubble” in cryptocurrency burst at the end of 2017 or the beginning of 2018 and it shows how painful bubbles can be. All the retail frenzy has washed away now, and the market is in the process of transformation from retails to institutions. Historically looking at bubble bursts, they don’t bubble back up again. Novogratz adds that he expects a grind towards higher prices.
  • The venture and hybrid funds have started investing in bitcoin-based funds. One of the reasons institutional investors are late to the party is the fact that the US Government (the SEC) keeps shutting down (the Bitcoin ETF). According to Novogratz, in March we may have the first SEC-approved Bitcoin ETF launched. The NYSE parent company is also planning to launch the Bitcoin (BTC) futures in March, thus “all the things are just getting started”.

“All the architecture that institutions need to feel comfortable with this is being put in place”.

  • Currently, there are “four or five really decent custody solutions”. He mentioned a Fidelity-owned Bitcoin custody service which, accordingly, already has 200 or 300 customers in the queue already. It will start with a small amount of assets but will grow with time.

“A small amount of institutional assets is a lot of money.”

  • The next phase will separate the Bitcoin from the other cryptocurrency. Unlike other metals, Gold is valuable because of its store of value. Its sovereign money and sovereignty cost a lot of money. The idea of Bitcoin being free and chip is “misguided”, adds Novogratz.

“Bitcoin is gonna be a digital gold”

Novogratz is the founder and CEO of Galaxy Digital. Previously a hedge fund manager and Goldman Sachs partner, he is one of the most influential people in the crypto industry.

Near the end of last year, Novogratz stated he expects the cryptocurrency markets to “flip” in 2019.

Leave a comment

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry that something went wrong, repeat again!