Billionaire Investor Explains Why He Doesn’t Panic Over Bitcoin’s Recent Crash

Billionaire entrepreneur and head of the Galaxy Digital crypto fund Mike Novogratz remains calm about the prospects for the cryptocurrency market even during the market crisis. The day before, he said that Bitcoin and altcoins are still the foundation of the future world of finance.

Well, the main thesis of Novogratz in this case is the need to use Bitcoin as a counterbalance to the inept strategy of governments to raise the global economy after the difficulties caused by the spread of COVID-19. Let’s talk about the investor’s point of view in more detail.

Mike Novogratz is a longtime fan of Bitcoin and cryptocurrencies in general who has been involved in the blockchain niche for years. The version that the main coin may outstrip gold in terms of market capitalization, he already announced earlier.

In particular, in the spring of 2021, on the air of the Squawk Box broadcast on CNBC, Mike said that the pace of adoption of cryptocurrencies around the world is significantly ahead of analysts’ forecasts. According to him, he initially bet on the growth of BTC to $ 60 thousand, since in that case it would be 10 percent of the capitalization of the precious metal. However, in the end, Novogratz came to the conclusion that nothing prevents the cryptocurrency from catching up with gold in this indicator. We wrote in more detail from the point of view of an expert in a separate article.

At least in terms of profitability, BTC is significantly ahead of the metal. If an investor had invested just a dollar in bitcoins at the end of 2009, today he would have had 42.75 million dollars – and this is already taking into account the sinking of the coin market at the moment. At the same time, the same investment in gold during all this time would have grown to only $ 1.72.

bitcoin gold chart

Comparison of return on investment in Bitcoin and gold since the end of 2009

With all this in mind, Mike has no doubts about the future of cryptocurrencies. They are with us forever, says Novogratz.

What will happen to Bitcoin next

Novogratz compared Bitcoin to gold. Moreover: the main cryptocurrency is supposedly the best version of the precious metal, the expert said. Here is a quote from him, in which he shares his attitude towards various assets. The replica is given by CryptoPotato.

I look at Bitcoin in particular as digital gold and cryptocurrency is the best version of a traditional asset. Not only millennials are addicted to crypto, but the whole world.

Thus, the investor makes it clear that the prospects for the development of the cryptocurrency market are huge, and short-term drawdowns in their rates do not change the overall picture. And since the future still belongs to digital currencies based on the blockchain, there is no point in abandoning them now. After all, in the future, you will still have to return to them.

Mike Novogratz Galaxy Digital

Mike Novogratz

Indeed, the advantages of Bitcoin over gold are obvious. Just what is the limitation of its maximum supply at the level of 21 million coins and the ability to send an asset anywhere in the world for relatively little money. According to these indicators, the metal loses exactly to the crypt.

In the finances of the future, a place has been prepared not only for BTC, but also for some of the most promising altcoins, the billionaire is sure. They will make the economy «more transparent and fair . » We agree with this statement: cryptocurrencies are already becoming a popular means of making transactions in many developing countries, and in El Salvador, BTC was even recognized as a legal tender at the national level, although many consider this event to be an unfortunate step of the local government.

Bitcoin is not so far from the bottom of the current correction – this is the opinion of analysts of the Stack Funds platform. According to them, the worst is over. The main cryptocurrency for some time fell below $ 30 thousand on Tuesday, but this level was quickly bought back by the bulls, which indicates their confidence in a pullback. In addition, the fact that MicroStrategy continues to buy BTC also speaks of a positive scenario for the development of events in the near future, analysts are sure.

bitcoin chart rate

Bitcoin price chart for the last year

We believe that Mike Novogratz’s point of view is true. Cryptocurrencies will indeed become and are already becoming the next step in the development of world finance, therefore, in the long term, their victory is beyond doubt. The only difference here is that Novogratz, due to the abundance of resources, can not only invest in new projects, but also wait for their development and growth for years. And this is important to consider for all fans of the billionaire who want to follow his investment strategy.

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