During an interview with Bloomberg TV on Tuesday, February 12, Mike Novogratz, former partner of Goldman Sachs and founder of cryptocurrency bank Galaxy Digital, once again said to have confidence in the future of Bitcoin. According to him, Bitcoin has a special position on the crypto market, comparable to the position that gold has on the traditional market.
According to Novogratz, the fact that Bitcoin is sovereign is very important. And that is why it is comparable to gold according to him. During the interview, Novogratz said:
There are 118 elements in the periodic table of the elements, and only one of them is gold […] Bitcoin becomes digital gold, something sovereign money, it is not American money, it is not Chinese money, it is sovereign. Sovereignty costs a lot, as it should be.
Bitcoin would therefore, according to him, be an asset with few risks and thus an important loophole during, for example, economic unstable times. According to him, the current bitcoin price is close to the bottom, but a price of $ 8,000 would be a reasonable price for the future.
On the cracked crypto-bubble and the persistent crypto winter, Novogratz said that the current situation shows “how painful a bubbling bubble can be”. According to him, the recovery of the market depends on the entry of large institutional investors who will cause a large influx of money.
During the interview, Novogratz drew up a report from the Dutch KPMG, in which the auditor states that the entry of institutional investors is an important factor for the recovery of, among other things, bitcoin.
However, it requires an adequate infrastructure first, something for which Bakkt could be a solution. Bakkt is a custody solution of institutional level, making exposure to cryptocurrencies easier for institutional investors.
In addition, Fidelity also works on crypto-related products for institutional investors, and bitcoin ETFs may appear on the market next year. All in all, more and more products are being placed on the market for these large investors, which means that the barrier to entry to the crypto market is much lower.