Bitcoin proponent Mike Novogratz, spoke at the MENA Summit 2019, where he discussed the volatility of Bitcoin and cryptocurrency markets and its transition into a store of value and a competitor for gold.
The world had witnessed a “once in a generational bubble in cryptocurrency” which was oozing with volatility, he said. He further added that volatility would eventually come back, some of it owing to U.S government politics.
Mike Novogratz also said that politics would create a period of volatility, affecting a rally where people would “buy the dip market and not stay long market.” Speaking about the drawbacks of the traditional markets, Novogratz stated,
“One of the real reasons everybody should have one percent of their portfolio in Bitcoin are these reasons. Bitcoin is becoming a digital gold and really the only crypto that has value just because it does. It is the hedge against these Minsky Moments…”
“If we start having a real financial crisis, the breakdown in trust in government securities, then it’s going to skyrocket ’cause it really is hard money… it’s going to replace gold.”
Novogratz also said that Bitcoin’s store of value was one of the reasons why financial institutions were getting into the crypto-space.
Fidelity and NYSE are some of these institutions that have shown a liking towards Bitcoin. To this, Novogratz said that these institutions would become, “the architecture for the rich guy and rich institutions to safely store money in Bitcoin” in the upcoming future. He said that these two institutions would start by June and pension funds would also start accumulating Bitcoin in small amounts.
@JT_XRP, a Twitter user commented,
“Mike @novogratz is the biggest bag holder of $XRP; he promotes Bitcoin because he needs to unload his bags on naive new investors. After all, he has invested in the company @Ripple”
@DutchXRP, another Twitter user commented,
“I think he is saying: Regulation is US is coming by June. From that moment, these pension company’s can hold thes assets not their balance sheets.”