The billionaire investor and former Goldman Sachs and Fortress trader, Mike Novogratz was at the Bloomberg Invest Summit in New York and he said there, that the cryptocurrency market is moving to the $20 trillion regions.
Although, during the interview, he also asserted that the $20 Trillion mark will not be easy. While Novogratz is often measured as an optimist and a bull investor in the cryptocurrency sector, he has presented an evaluation of the cryptocurrency market support by actual indicators, statistics, and realistic overview of the industry.
Novogratz laid emphasis that the real investments that have arrived in from institutional investors have practically been non-existent, and the latest bull rally was triggered by retail investors or individual traders. And it is so, regardless of the mounting demand from institutional investors for cryptocurrencies.
Many experts like Block-tower founder Ari Paul have noted in the history that the entry of institutional investors would need steady and forceful custodian solutions. It is likely that institutional investors will enter the market in the mid-term since many cryptocurrency businesses including Coinbase and conglomerates in the traditional finance sector such as Susquehanna are by now in process to build custodian solutions.
“It won’t go there ($20 trillion) right away. What is going to happen is, one of these intrepid pension funds, somebody who is a market leader, is going to say, you know what? We’ve got custody, Goldman Sachs is involved, Bloomberg has an index I can track my performance against, and they’re going to buy. And all of the sudden, the second guy buys. The same FOMO that you saw in retail [will be demonstrated by institutional investors],” explained Novogratz.
The interview was focused on the economics of the cryptocurrency market. He was also asked about the criticism from skeptics regarding the bubble-like trend of bitcoin in early 2018, Previously he known in news about “Merchant Bank”
In response, he stated that if the January bull rally of bitcoin, Ethereum, and other cryptocurrencies is measured as a bubble, it can be explained as the 1996 dot-com bubble which took place prior to the 1999 bubble that led the dot-com bubble to reach a valuation of $6 trillion before it crashed to $1 trillion.
He also stated that the cryptocurrency market will bounce back from its main alteration in mid-2018 and surpass previous all-time highs to reach a $20 trillion market valuation.
“[Cryptocurrency] is a global revolution. The internet bubble was only a US thing. It was rich US people participating. [Cryptocurrency] is global. There are kids in Bangladesh buying coins. It is monstrous in Tokyo, in South Korea, in China, in India, and in Russia. We’ve got a global market and a global mania. This will feel like a bubble when we’re at $20 trillion,” said Novogratz.