The Bitcoin bull, Mike Novogratz, the CEO of the cryptocurrency commercial bank Galaxy Digital, is not affected by the recent bear market, and says that bitcoin is “digital gold” that will survive and prosper in the long term.
Novogratz admitted that he lost money during the fall of 2018 due to bad market calls, but that does not hinder his long-term perspective that cryptography is a revolution whose time has come.
As reported by CriptomonedaseICO, Galaxy Digital lost $ 136 million during the first nine months of 2018 due to the loss of positions in Ether, XRP and Bitcoin during a relentless bear market. Despite this, Novogratz remains as optimistic as ever about cryptography, especially BTC.
“I think Bitcoin will be digital gold,” Novogratz told Bloomberg. “That means it’s the only one of the coins that becomes a legal pyramid scheme, just like gold.”
Novogratz said that bitcoin and gold are similar due to their finite supplies. “All the gold that is extracted in the history of the world fits in an Olympic pool,” he said. “You’re crazy for thinking that that pool is worth $ 8 billion, but it’s because we say it is.”
Novogratz said that the naysayers who are delighting in the current situation about the current market slowdown should realize that the mass adoption of a new currency takes time. And early setbacks do not necessarily mean fatality.
“Revolutions do not happen overnight,” said Novogratz.
‘Macro Market On Steroids’
The former Goldman Sachs partner and hedge fund manager said he had never witnessed a financial phenomenon such as cryptography, so he left the investment bank to plunge headlong into the emerging cryptocurrency industry.
“For me, crypto was interesting because what macro guys do is try to simplify things, they were macro steroid markets,” Novogratz recalled. “I had never seen anything parabolic on a record board before. I thought: ‘My God, this is the craziest table in history’ “.
Mike Novogratz and other cryptographic evangelists say that 2019 will be an important year driven by an increase in institutional investments. In fact, it predicts that bitcoin prices will reach record levels in 2019.
“At the end of the first quarter. [of 2019], we’re going to get $ 10,000, “he said.” After that, we’ll go back to the new highs, at $ 20,000 or more. ”
“Some of the smartest people” invest in Crypto
During the summer, the industry obtained a significant credit rating on the street after the multimillion-dollar university endowments of Harvard, Yale and Stanford University announced that they had invested in cryptography.
The move was seen as an unmistakable sign of institutional trust in crypto as investment vehicles. As institutions tend to copy each other, analysts say the measure will provoke a chain reaction among other well-known institutional investors, such as pension funds.
“The fact that David Swensen [Yale’s chief investment officer]” puts an investment in Bitcoin – with his reputation on the line, his endowment on the line – tells him something, “Novogratz said.” Some of the smartest people in the world of investments believe that it is a store of value. “
Also published on Medium.