Institutional investment is driving Bitcoin as a store of value. Altcoins and Bitcoin cannot be compared, according to the executive.
Bitcoin could be able to double its current price over the next year and take up to 10 percent of gold’s market capitalization, notes Mike Novogratz, CEO of Galaxy Digital.
In an interview for Real Vision, with the also well-known investor Raoul Pal, Novogratz affirmed that the institutional investment and the attractiveness that people feel for Bitcoin will make this cryptocurrency grow unstoppably.
For Novogratz, this time is different from 2017, although in his opinion Bitcoin is growing at a rapid pace. The CEO of the cryptocurrency investment house stated that Bitcoin could take away market capitalization shares from gold thanks to the sustained and progressive growth that the cryptocurrency market has.
“I guarantee you that this will not happen in a year, but at the rate, we are going, these things tend to happen quickly,” he said contemplating that Bitcoin should be taking up to at least 25% of capitalization to gold over the next few years.
Considering the huge institutional investment that BTC has received this year, Novogratz cites MassMutual’s $ 100 million investment.
“If an insurance company can do this publicly, then there is no entity in the world that can be ashamed of buying Bitcoin,” he said about MassMutual and the institutional interest in Bitcoin.
The executive also refers to the fact that the institutional fever for Bitcoin is up to become a fierce competition because there is a need for specialists that will be able to make this type of investment.
There is no comparison between Altcoins and Bitcoin when it comes to being a safeguard of value
The executive also commented that the cryptocurrency market is not growing as fast as Bitcoin. Novogratz pointed out that certain decisions in some cryptocurrency projects have risked the confidence of investors and the community in these markets.
The executive cited the case of Charlie Lee, founder of Litecoin, who is criticized for having sold his LTC right at the top of its price, affecting the market and the confidence of the project in 2017.
“For me, it’s not so cool that the founder dumps his funds in a bullish moment. Great as a speculator, but not as a community builder”, he said. In this sense, Novogratz doubted the relevance of altcoins, this happened due to the weakness of their communities and thanks to the widespread and growing interest in Bitcoin.
“I don’t see new people joining those communities. To be fair, it feels like they are something of the moment or Ponzi schemes. What do I see differently in Bitcoin? I see new people coming in all the time, including institutions”.
Mike Novogratz, CEO of Galaxy Digital.
“As for coins intended to be a safeguard of value, I do not think they will last long,” he said, referring to some altcoins. Novogratz says that many of these projects do not have specific use cases.
Although he talks about Ethereum as a platform with a very strong and confident community, which could make interesting contributions to the world of finance.
Novogratz opined that investment houses should offer Bitcoin among other important assets (macro-assets) such as gold, oil, food, national bonds.
On the other hand, stable coins or stablecoins set their organization in their category according to their market capitalization; and in another category, locate cryptocurrencies such as Ethereum, Bitcoin Cash, Ripple, and Litecoin, for example.
At the end of last November, Novogratz recommended investors to keep 2% or 3% of their capital in Bitcoin, we reported in CriptoNoticias.
Novogratz’s view of Bitcoin as the best store of value at the moment may receive an influence from the reported losses by Galaxy Digital during the cryptocurrency market price downturn in 2018.
This lesson seems to have also imbued other financial institutions around the world, whose investments in Bitcoin already sum the total equivalent of $ 20 billion.
By: Jenson Nuñez.
