Bitcoin has surged over the previous couple of weeks, smashing through its 2017 peak and treading recent floor for the primary time in three years.
The bitcoin value has greater than doubled within the final two months, a bull run that started when funds large PayPal
Now, former hedge fund billionaire-turned bitcoin and crypto investor, Michael Novogratz, has stated he can see bitcoin hitting $50,000 subsequent yr—predicting bitcoin will finally “eclipse gold.”
“It’s simple for me to see bitcoin being at $50,000 subsequent yr,” Novogratz advised Raoul Pal, the chief government of economic analysis and media firm Real Vision in an interview final week, explaining: “That’s 10% of gold.”
Bitcoin has developed its reputation as digital gold amid the coronavirus pandemic and subseqent unprecented authorities spending spree, attracting the eye of a number of big-name investors who see bitcoin as an rising safe-haven asset and inflation hedge.
“I do know as soon as we get to 10% of gold, we’re like, why is it solely 10% gold,” Novogratz requested. “Why is it not 25% of gold? Then it’ll eclipse gold at one level.”
Whereas Novogratz does not anticipate bitcoin’s market capitization to overhaul gold quickly—”I assure it isn’t going to occur in a yr”—he does see recent developments accelerating bitcoin’s progress.
“These items occur sooner when you find yourself getting these community results,” added Novogratz, a former Goldman Sachs veteran who started cryptocurrency investing in 2013 and left Fortress Funding Group in 2015 to give attention to bitcoin and crypto.
Final week, British fund supervisor Ruffer Funding Administration revealed it had purchased $745 million value of bitcoin, broadly taken as an indication of rising institutional interest.
Earlier this month, Ray Dalio, the legendary billionaire founder and co-chairman of the world’s greatest hedge fund, Bridgewater Associates, admitted bitcoin has established itself as a “gold-like asset alternative.”
In the meantime, Novogratz stated he believes the coronavirus pandemic has hastened the approaching “cryptocurrency revolution,” pointing to the U.S. authorities and Federal Reserve’s response and the “digitalization of everything.”
“We’re going to look again in 5 years from now, we’re going to see 2020 as horrible as corona was, and many individuals have misplaced their lives … We’re going to look again and in some bizarre method, that is going to have been a blessing for the cryptocurrency revolution for the group.”
“There couldn’t be a greater macro story. We couldn’t write one higher than proudly owning bitcoin as a tough asset proper now.”