Billionaire investor Mike Novogratz commented at the Bloomberg Invest Summit that cryptocurrency’s market cap is heading towards 20 trillion USD. This would be a tremendous increase from the current cryptocurrency market cap near 340 billion USD today.
If the cryptocurrency market cap hits 20 trillion USD like Mike Novogratz expects, it would be approximately a 6000% price increase. Each Bitcoin would possibly be worth 500,000 USD in such a scenario. Although this price increase sounds huge and unrealistic, it is not unprecedented for the cryptocurrency world. Since the first Bitcoin purchase occurred in 2010, a couple large pizzas for 10,000 Bitcoins, the price of Bitcoin is up over 200 million percent. When viewed in that perspective the 6,000% increase that Mike Novogratz is called for doesn’t seem so crazy.
Mike Novogratz says that if the cryptocurrency rally which peaked around the beginning of 2018 is to be considered a bubble then it’s like the dot com bubble of 1996 which occurred before the much bigger dot com bubble of 1999 where the value of that industry hit 6 trillion USD.
Novogratz says that cryptocurrency is a global revolution with a global market that is stirring up a global mania, as opposed to the dot com bubble which was only popular in the United States. He states that cryptocurrency won’t feel like a bubble to him until the market hits 20 trillion USD.
According to Novogratz the most recent rally that brought Bitcoin prices to 20,000 USD was caused by individual and retail traders, but up to this point, institutional investors have barely invested even though there is growing demand from them. He says one thing that has been slowing things down is lack of proper custodial solutions for big investments.
Eventually, Novogratz expects a reputable firm with the proper setup to attract a big cryptocurrency investment, inducing someone else to buy, and so on and so forth until cryptocurrency is commonplace in institutional investor’s portfolios.
If Mike Novogratz is right, it is quite a bargain to purchase Bitcoin today at the price of 7,500 USD per coin.
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