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- Mike Novogratz remains optimistic about the performance of Bitcoin in the face of the coronavirus pandemic and believes that Bitcoin is recovering from the recent crash.
- Social Capital’s CEO said Bitcoin could rise to 2.0 gold in the next 10 years.
- A prominent Bitcoin whale sees an increase in volatility coming to the crypto market as the U.S. government attempts to combat the economic crisis.
In recent months, the spread of the coronavirus has hit the global economy with devastation. The traditional markets, Bitcoin and the crypto market have experienced increased volatility and a price drop not seen for years. Although the uncertainty remains, the price of Bitcoin has remained stable, with slight gains, in the $6,000+ range.
Presumably it may take months before Bitcoin recovers, as the investment firm Fundstrat Global Advisors claimed. However, investors like Mike Novogratz remain optimistic about the BTC price. In a recent interview Novogratz spoke about the reasons that make him optimistic about Bitcoin.
This is the year of Bitcoin
Novogratz, Galaxy Digital’s CEO, said in the interview that Bitcoin is in the best position to test its historical highs. According to the investor, there are new investors buying Bitcoin due to the crisis. Novogratz has been historically bullish about Bitcoin. He said that this is the year of the BTC and that he will withdraw his investment if the Bitcoin does not rise:
If it doesn’t go all out by the end of the year, I think I might just hang my spurs. Because if it doesn’t go up now, you know, I’m not sure when it will…
We should have doubled within six months, we really should have. This is the time, maybe within the end of the year.
Novogratz said Bitcoin is a hard asset against the U.S. policy of “growing money on trees”. He also believes that this policy will lead to Fiat money losing its value at some point, which will benefit Bitcoin.
"This is the year for bitcoin," says @novogratz, and if it doesn't go up now, "I might just hang my spurs." pic.twitter.com/KbUQfMzzEI
— CNBC's Closing Bell (@CNBCClosingBell) April 2, 2020
Bitcoin will become gold 2.0
This was also recently expressed by the CEO of Social Capital, Chamath Palihapitiya, in the podcast of Anthony Pompliano, the co-founder of Morgan Creek Digital. Social Capital’s CEO said that Bitcoin will achieve “Gold 2.0” status within the next 10 years.
According to Palihapitiya, the current crisis was necessary to make Bitcoin stronger and more relevant. This crisis, Palihapitiya said, will put the economy in a dilemma by 2030 from which it will not get out, and Bitcoin will “emerge as a flight to safety,” Palihapitiya said:
There’s a real chance by 2030 we don’t find a way to inflate our way out of this, and that the only way to break the back of deflation is essentially to create some quasi form of gold standard.
By that time, Bitcoin will no longer be a speculative instrument and, as Novogratz said, will have consolidated as a hard asset. Then, people will opt for Bitcoin as the new gold standard 2.0, according to Palihapitiya:
But it will be almost impossible to do that between governments and central banks. They’ll never agree on an instrument and they’ll never agree on an exchange. But then bottoms up people could decide to do it. And the minute when that happens, then it’s a done deal.
Depending on the extent of the crisis into which the economy has just entered, this could happen more quickly. In the short term, the Bitcoin whale Joe007 predicted that volatility in the crypto market will continue to increase as the US government attempts to mitigate the crisis.
In this sense, investors will continue to invest their assets in dollars and this will affect the price of the BTC. The Bitcoin whale was pessimistic and said that this crisis will be the “greatest shock of our generation”:
Unless something changes dramatically, I expect flight to USD liquidity fully play out first, with appropriate consequences for BTC price (and crypto in general).
However, Joey007 also agreed with Novogratz and Palihapitiya that the policy of “growing money on trees” will have negative consequences. According to Joey007, this can make an asset with real value, like Bitcoin, more popular.
Below you can find the 256th episode of the Pomp Podcast:
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