Michael Novogratz, one of the largest Bitcoin (BTC) bullishers in the world, does not recommend investors to put most of their funds in Bitcoin.
Although Novogratz is confident that Bitcoin will „outperform“ the precious metal, it’s still safer to buy more gold than Bitcoin because of the highly volatile nature of cryptomone currency.
Mike Novogratz can „hang up his gloves“ if the price of Bitcoin doesn’t reach $20,000 by 2020
Bitcoin is still „at the beginning of the adoption cycle,“ says Novogratz.
„I have a feeling that Bitcoin far outweighs gold, but I would tell people to have much less Bitcoin than gold, just because of the volatility,“ Novogratz said during CNBC’s Fast Money on July 8.
According to Novogratz, cryptomoney is still difficult to obtain because it is still „at the beginning of the adoption cycle. However, the digital currency will gradually gain momentum as more companies around the world introduce more tools to drive mass adoption of cryptomonics.
Novogratz predicts that bitcoin will be worth USD 20K in 2019, while Galaxy Digital gets a green light for IPOs
„Bitcoin is still hard to buy. If it were easier to buy, it would be much higher. And more and more people are making it easier to buy: funds are created, custodians are made, in a moment we will get an ETF“.
Gold prices reach 9-year highs amidst coronavirus
Novogratz’s call to prioritize gold over Bitcoin comes as gold prices reach a nine-year high. On July 9, gold broke a threshold of USD 1,800, reaching the highest price since September 2011. The high gold prices are apparently the result of economic fears about the new coronavirus. As of the close of this edition, spot gold trading is at USD 1,810, an increase of approximately 0.1% over the last 24 hours.
Novogratz argues that the recent stimulus is causing an upward trend in Bitcoin
Novogratz is known as one of the largest investors in cryptomonies and blockchain. He runs Galaxy Digital, a major venture capital crypto-currency company and operations office. In addition to investing in the emerging industry, Novogratz is optimistic about BTC’s price, predicting that Bitcoin System will reach $20,000 by the end of 2020.
Last year, Novogratz predicted that institutional interest would push the price of Bitcoin to USD 20,000 before the end of 2019. The crypto currency did not meet these expectations, and finally traded around USD 7,000 by the end of the year.