Former Wall Street hedge fund manager and popular Bitcoin proponent Mike Novogratz thinks that institutional money will start coming into the cryptocurrency market in the next 6 to 12 months as custody solutions are rolled out.
They Won’t “Rush In on Day One”
Speaking on Bloomberg Daybreak: Middle East, the CEO at Galaxy Digital laid out his current position on Bitcoin and the cryptocurrency market.
Novogratz acknowledged the tumultuous nature of 2018 for the cryptocurrency market, as a lot of the digital currencies have collapsed in value with more than 90 percent, while the market itself has lost upwards of $700 billion.
However, he also remains firm on his feet, holding that recovery will follow.
He said that all the “retail friends that came up and down are washed out” and that the market is in the process of “handing off ownership from retail to institutions.”
The expert outlines that all the architecture which institutions need to “feel comfortable” is currently being put in place.
Namely, Novogratz noted Bakkt and Fidelity as important steps in providing trusted custody solutions, saying that they are likely to come in somewhere next month.
However, he also holds that institutions won’t “rush in on day one” but they would rather take their time and see some “water run through the pipes.”
Nevertheless, Novogratz predicts that institutions will allocate a small amount of their assets into the cryptocurrency market over the next 6 to 12 months while clarifying that “a small amount of institutional assets is a lot of money.”
Bitcoin Will Be ‘Digital Gold’
Commenting on Bitcoin, Novogratz said that the cryptocurrency “is going to be digital gold.” He outlined that it will be a place where “you have sovereign money.”
It’s not US money, it’s not Chinese money, it’s sovereign. And so sovereignty, it costs a lot. It should cost a lot.
Novogratz has said that bitcoin will become “digital gold” before. In December 2018, he said:
I do believe Bitcoin is going to be digital gold. That means it’s the only one of the coins out there that gets to be a legal pyramid scheme. Just like gold is.
But he’s also not the only one to compare Bitcoin to the precious metal. In fact, some proponents like Digital Currency Group’s Barry Silbert have argued that Bitcoin is ’50 times more useful’ than gold.
The popular Bitcoin investors, owners of the Gemini cryptocurrency exchange, Tyler and Cameron Winklevoss, have also said that Bitcoin is better than gold.
Do you think institutional money is coming to the cryptocurrency market? Don’t hesitate to let us know in the comments below!
Images courtesy of Shutterstock
Let’s block ads! (Why?)