Mike Novogratz, CEO and founder of Galaxy Digital, recently expressed his bullish views on Bitcoin as usual. On CNBC, during Squawk Box, the billionaire investor explained why he believes bitcoin is about to reach parity with gold in terms of market cap and even surpass the yellow metal.
Novogratz is impressed with the pace of Bitcoin adoption
There was a flurry of new bitcoin investments last year. The turmoil of another economic recession due to the coronavirus pandemic has fueled interest in the flagship cryptocurrency. In essence, there has been a record number of institutional investors and high net worth investors who have jumped on the BTC bandwagon.
MicroStrategy was the first Wall Street company a invest in bitcoin. Since then, more and more mainstream companies including Square, MassMutual, Tesla and others have subsequently unveiled huge US dollar investments in BTC.
During his interview, Novogratz noted that bitcoin adoption is happening at a faster pace than he imagined. Indeed, he is shocked at the speed with which people move in the crypto space.
As one of the first bitcoin investors, who entered the dominant cryptocurrency while trading in triple digits, Novogratz is able to always see a radiant future. However, he admitted that his $ 60.000 goal earlier this year was rather conservative. This prediction was conditional on bitcoin stealing around 10% of gold's market capitalization.
He said earlier in the year he thought he could steal 10% of the gold market and hit $ 60.000. However, he told himself and his investors that once 10% of the market was "stolen", he would reach 20 and then 50, and finally 100%, definitively surpassing the market capitalization of gold.
BTC good, gold bad
Currently, gold boasts a market share of nearly $ 11 trillion, while bitcoin has a market cap of $ 1,1 trillion. However, in addition to stealing space from gold as a safe haven, bitcoin has also performed better than bullion. Indeed, according to market analyst Holger Zschaepitz, gold has had its worst start to the year since 1982. The yellow metal is currently below $ 1.700 while the price of bitcoin is approaching $ 60.000.
Mike Novogratz also said that bitcoin's attribute as digital gold gives it an edge over the yellow league, adding that he thinks it is on the way to achieving the same market cap as gold and thereby surpassing it.
The value of Bitcoin relative to that of the yellow metal has grown twice in the last 2 months and substantially eight times since October last year. That said, the idea that bitcoin's market value exceeds that of gold doesn't seem too crazy.