Mike Novogratz Thinks Gold’s Near 8 Trillion Market is Small Fries for Where Bitcoin is Going

Bitcoin (BTC) has been several times compared to gold and how it shares some features with the precious metal.

This time, Mike Novogratz, the CEO fo Galaxy Digital, explained that Bitcoin could easily reach gold’s market capitalization. Although he admitted that this could take over 20 years, the possibilities exist.

Bitcoin Or Gold As A Store Of Value?

In a recent conversation that Novogratz had with Anthony Pompliano, the co-founder and partner at Morgan Creek Digital, he said that Bitcoin provides an alternative to gold. At the same time, he discussed how Bitcoin is a cheap and fast way to transfer money around the world.

About Bitcoin becoming a store of value, he 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.”

In addition to it, Novogratz said that he processed a transfer to a friend. He sent $10,000 worth of Bitcoin and he paid only six cents. The intention was to show that sending a large transaction was not expensive at all.

Now, developers are working on implementing the Lightning Network (LN), the ultimate scaling solution for Bitcoin. With it, users would be able to process thousands of transactions per second and for just a few cents.

Novogratz explained that Bitcoin is still far from reaching gold’s market capitalization. Indeed, Bitcoin’s market cap is still 100 times smaller than gold’s market cap. Moreover, he does not see any reason why Bitcoin would not be able to reach gold’s market cap in the future. For him, this could take over 20 years.

Additionally, another important discussion in the cryptocurrency space is related to traditional investors entering the market. During the last years, space has focused on retail investors. In the future, traditional investors and institutions could play an important role in the market.

There are some companies that are currently creating the necessary infrastructure for these traditional investors to place their funds in the industry. Two of these firms are the Intercontinental Exchange (ICE) that wants to release the Bakkt platform and Fidelity Investments that opened a new branch called Fidelity Digital Assets and that has already been working with some selected customers.

The views and opinions expressed in this article Mike Novogratz Thinks Gold’s Near 8 Trillion Market is Small Fries for Where Bitcoin is Going do not reflect that of 48coins, nor of its originally published source. Article does not constitute financial advice. Kindly proceed with caution and always do your own research. In rounding off this piece Mike Novogratz Thinks Gold’s Near 8 Trillion Market is Small Fries for Where Bitcoin is Going, here’re the Top prominent words: 8 Trillion Market. Alternative To Gold. Bitcoin Provides. Gold As A Store. Gold’S Market Cap. Gold’S Market Capitalization. Gold’S Near 8 Trillion. Gold’S Near 8 Trillion Market. Market Capitalization. Reach Gold’S Market. Traditional Investors. Trillion Market.

Aren’t You Curious How’s Your Favorite Cryptocurrency Performing Today on October 22, 2020?

Check out 48coins price analysis category on 48coins. Explore price predictions from all industry experts. Select your favorite cryptocurrency for more data, such as crypto exchanges, historical data, charts, FIAT converter, social hype and much more!

Real Time Data at Your Fingertips
#CoinPricePrice Graph (7D)
1$ 12,900.23
2$ 396.72
3$ 0.996385
4$ 0.259495
5$ 266.42
6$ 30.83
7$ 11.31
8$ 4.23
9$ 55.17
10$ 0.107897

Leave a Reply