Billionaire investor Mike Novogratz doesn't see Bitcoin as a currency; rather, he doubles down on the digital currency as digital gold.
“I don’t think Bitcoin is going to be used as a transactional currency anytime in the next five years,” said Novogratz, founder, and CEO of Galaxy Investment, in an interview with Bloomberg. “Bitcoin is being used as a store of value.”
As a digital gold, he sees Bitcoin going a lot farther.
“And so Bitcoin as a gold, as digital gold is just going to keep going higher,” said Novogratz.
“More and more people are going to want it as some portion of their portfolio.”
This week, BTC price broke into a new 2020 high with a surge above $13,000 after PayPal announced support, a move heralded as game-changing.
According to him, other companies like Mastercard, Visa, and American Express will follow suit “within a year.”
“It’s no longer a debate if crypto is a thing if Bitcoin is an asset if the blockchain is going to be part of the financial infrastructure,” he said.
“It’s not if, it’s when, and so every single company has to have a plan now.”
All of this has been because of the coronavirus pandemic, which Novogratz said has “accelerated adoption of crypto.”
This acceleration happened in two ways: “the macro story with Bitcoin” and the digitalization of the financial services system, which is currently centered on the Ethereum network and, as per him, “going to mostly be built” on it only as well.
Already, the digital currencies are leading the rally, beating not just traditional assets but also the banking stocks, which are down 20 to 60%.
“The entire payment system of the financial system is going to change, and it’s going to change much faster than people thought.”
And this financial infrastructure is going to be built around blockchain, he added.
In a separate interview with CNBC, he talked about expecting the Democrats to win both the White House and Congress and the tax plan of Joe Biden will create buy the dip opportunities as the next stimulus will provide a ton of cash and people will continue to “pour into speculative assets.”
“We're going to have some volatility around Joe Biden's tax plan, and maybe it gets people a better chance to buy stocks, but people are going to be buyers on dips.”