The founder and CEO of Galaxy Digital, Michael Novogratz, remains bullish about the future of the most popular digital asset. During a conversation with Anthony Pompliano last week, he said that Bitcoin could eventually overtake gold as a store of value.
Novogratz Bullish About Bitcoin’s Future
During a conversation with Anthony Pompliano, the co-founder and partner at Morgan Creek Digital, Novogratz showed himself very sure about the future of virtual currencies. During the live stream, they discussed the future of the space, how the industry is evolving and more.
Novogratz explained that Bitcoin started as a social experiment and that it allowed people to create “sovereign money.” He went on saying that the technology worked and that now Bitcoin has a market capitalization of $70 billion.
He has also stated that Bitcoin could become an alternative store of value to gold. On this issue, Novogratz commented:
“I think of gold as a store of value. Bitcoin provides a really interesting alternative to gold. Forget the other stuff that might come out of it. Forget the layer 2 solutions and payments and everything else. Just as its core, sovereignty should be expensive.”
He has also answered back to those saying that Bitcoin is an expensive way of sending payments and transfers. Novogratz said that he transferred $10,000 worth of Bitcoin to another account and it cost to him six cents.
“Seems pretty damn cheap to me!” he stated.
About Bitcoin reaching the same market capitalization of gold, he said that the digital asset is 100 times from it. Gold has currently a market capitalization of $7.5 trillion. He mentioned that he does not see any reason why Bitcoin couldn’t reach that value in the future. However, he emphasized that it can take a long period of time to reach that value, not just a year or two, but instead around 20 years or so.
Novogratz is also convinced that in the future Wall Street giants will start entering the whole crypto space. At the moment, there are several firms that are building the necessary infrastructure for these larger investors to place their funds in the crypto market.
The Intercontinental Exchange (ICE) and Fidelity Investments are building platforms for institutional investors to enter the space. Although it can take time, funds will start moving towards the crypto market.