Michael Novogratz: The Total Bitcoin`s Cost Will Exceed the Capitalization of Gold

The head of the Galaxy Digital company, Michael Novogratz, believes that in a couple of decades the capitalization of the first cryptocurrency can easily outperform the market volume of the most important precious metal of the planet – gold. Recall that now the world capitalization of the gold market is estimated at approximately 7.5 trillion US dollars, and the total value of all Bitcoins as of the time of this writing is $70.7 billion US dollars. In order to exceed the index of gold, Bitcoin needs to increase in price by about 100 times. If Michael’s forecast comes true, then one BTC will cost about 400 thousand US dollars.

“…We’re not going to get there in Bitcoin in the next year or two. But over a 20-year period, could that happen? Easily. Easily. And that’s giving zero optionality to all the other stuff…”

This opinion was expressed by Michael Novogratz during a conversation with Anthony Pompliano. They had a long conversation, which Pompliano had posted on his micro-blog Twitter. Novogratz is confident that the influx of institutional investors into the cryptocurrency market is inevitable and that even financial giants such as Goldman Sachs and ICE have already begun to master this industry.

https://twitter.com/APompliano/status/1108363593593077761

“I know Goldman for instance is gearing up around securities tokens. They’re not doing anything yet, but they’re getting really ready and looking at all the questions on – where would you store them? Do you have to build your own custody, or can you use someone else’s custody? How to get them to work”

Michael is confident that the growth potential of Bitcoin is still huge, so he believes that investors need to add this asset to their own portfolios.

I think the macro case for [Bitcoin] is pretty strong. And so, if you can put a couple percent of your portfolio in, there’s a decent chance it catches wind. Fidelity is just getting set up. Bakkt continues to get delayed a little bit, but it’s not going to be delayed forever. They’re going to be in the game. And there’s lots of other players coming.

Just a month ago, in an interview with representatives of Bloomberg, Novogratz said that already this year Bitcoin can overcome the $8,000 mark because institutional investors will come to the market.

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