According to billionaire Mike Novogratz, Bitcoin may yet hit $500k in five years.
Despite its expansion since its start, the cryptocurrency industry still has many detractors. Still, it also has plenty of enthusiastic supporters, including Mike Novogratz, the CEO of the cryptocurrency investment business Galaxy Digital.
According to remarks made by Novogratz at the Bloomberg Crypto Summit, Bitcoin (BTC) will surely reach $500,000 in the following five years because of its distinct characteristics and rate of adoption, according to eMoney Financial on July 19.
He mentioned that Bitcoin was “tailor-made to being an anti-inflation store of value” and that it was “easily transferrable and so it’s better than gold in so many respects” as some of its unique characteristics.
The wealthy ex-fund manager claimed that the debt-driven global banking system was fueling excessive consumer price inflation and that Bitcoin would be a useful long-term asset.
The Problem of High Degree of Leverage
According to Bloomberg’s Misyrlena Egkolfopoulou and Sonali Basak, the latest instability in the cryptocurrency market is a “full-fledged credit crisis.” Novogratz even acknowledged that he was “darn incorrect” about the extent of the leverage in the system.
“What I don’t think people expected was the magnitude of losses that would show up in professional institutions’ balance sheets and that caused the daisy chain of events. It turned into a full-fledged credit crisis with complete liquidation and huge damage on confidence in the space.
Notably, Novogratz played a significant role in promoting Terraform Labs as well. He acknowledged that the company’s failure taught him that the market and retail investors “had very little notion of risk management.”
Novogratz added that his cardiologist lost $1 million throughout the Celsius collapse and criticized authorities for not doing enough to safeguard small investors and allowing institutions to use excessive leverage.
Billionaire investor @novogratz says that his heart doctor lost $1 million in crypto when discussing disclosures among handling retail deposits with @sonalibasak #BloombergCrypto pic.twitter.com/4sGIzi7rv6
— Bloomberg Live (@BloombergLive) July 19, 2022
But he also expressed his belief that the crypto market’s “worst is over” and that the case for Bitcoin was still compelling, particularly in light of the war against inflation being waged by central banks worldwide.
In June, Novogratz predicted that the Federal Reserve would need to “lift its foot off the brake” for the crypto market to recover and that the bulk of hedge funds dealing in digital currencies would fail.
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