Recently, Mike Novogratz, the CEO and Founder of Galaxy Digital spoke about Bitcoin [BTC]’s growth, Bakkt and the institutional investors entering the cryptocurrency space, during an interview with CNN.
Novogratz stated that the cryptocurrency space has already witnessed a major sell-off and that Bitcoin’s price position in the market is “far better” in comparison to Ethereum [ETH] and other cryptocurrencies. He continued to say that there are several factors contributing to BTC’s position in the market. The main reason is it has become a digital store of value and was also the first digital asset.
The Founder stated that people have started to invest in the store of value and this itself is a significant factor. He said:
“… within 10 years somebody created this idea that now has a 120 billion dollars of value tied up in it and it doesn’t need a use case even to make it valuable.”
Furthermore, Novogratz spoke about whether Bitcoin is a blockchain player or a Fintech player for investors. He said that he views it more as a blockchain player and that Bitcoin is a digital gold which has a store value similar to that of Gold. He continued to say that as the younger generation gets older, they are “much more comfortable in a digital world”.
“… it just makes intuitive sense, like why wouldn’t I have Bitcoin”
The Founder also spoke about the security problems in the cryptocurrency space. According to him, there has been fraud and theft around the Bitcoin ecosystem. He said that hacking and theft has occurred while getting cryptocurrency in and out of exchanges and wallets. However, this is currently being worked on and the space is getting safer as the day passes, he said.
Novogratz further stated that space is seeing a significant inflow of institutional investors. He said he believes in New York Stock Exchange’s parent company ICE’s Bakkt, which is going to launch in November 2018, a partner of Galaxy Digital. He continued to say that once Starbucks and Microsoft start using Bitcoin as one of the payment rails after the launch of the exchange, the adoption of cryptocurrencies will see a significant increase.
Moreover, he said that there is an unexpected “institutional FOMO” going on in the cryptocurrency space and the space is going to see big announcements in the future. He stated that Goldman Sachs has announced the launch of their custody and once there are custody and service providers in the space, it’s going to open doors for pension funds and endowments.
According to him, there are already big endowments involved in cryptocurrencies through the venture space. He further added that he views Bitcoin separately when compared to the rest of the coins in the space.
Novogratz said that Bitcoin [BTC] and other cryptocurrencies are going to see a growth of around 30% towards the end of this year. However, he believes that the market is going to “massive run” only when the institutional investors are going to step in the space and start buying a lot of cryptocurrencies and its framework is currently being put in place.
“It’s going to get announced in the next few months, but that it’ll take a little bit of time to go through investment committees and what not. So I would say first quarter next year you will really start seeing it move.”
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