Mike Novogratz, the Bitcoin bull and a Billionaire investor believe that the Bitcoin's Store of value is not going to change the world. Mike during a speech at the Ethereal Summit put out some interesting views on the pioneer Bitcoin and how the market capitalization of the digital asset is going to shape the future of the market.
Novogratz is a big-time Bitcoin proponent who has recently predicted the price of Bitcoin to touch $20,000 by 2020. He also went on to claim that Bitcoin is finally reaching the end of the saturation point as a digital store of value. While he agreed that up until now, Bitcoin has been seen as a digital equivalent of gold, and a large section of the society used it as a store of value, but no amount of innovation or development can help the pioneer to further its use cases as a store of value.
During his speech at the summit, Novogratz said that people are still interested in Bitcoin and there is still a large section of untapped users who are looking to make a foray into the crypto space by investing in Bitcoin. The main reason for Bitcoin to still attract so many potential investors is because it was the pioneer of the crypto space and also the first digital financial asset.
Novogratz also compared Bitcoin with gold claiming that just like Gold even Bitcoin acts as a store of value for investors but largely functions as a social construct. He explained that gold does not hold any intrinsic value of its own and it mostly depends on the demand of the public. The change in value is dependent on the social surrounding rather than its use.
Bitcoin Is Not Going To Change The World
Novogratz is a well-known Bitcoin proponent and an avid Bitcoin bull but despite all these facts, he concluded that Bitcoin is not going to change the world. The former Wall Street executive’s claims come on the behest of his analogy of the declining potential of Bitcoin as a store of value and the limitations over its use as a form of currency. He went on to claim that Web 3.0 technology has more real-world chances of bringing a significant change to society rather than Bitcoin.
The comments made by Novogratz did not find many takers in the decentralized world, as many believe that the age-old Gold comparison is not really the right parameter to judge the potential of Bitcoin. Many in the past have made the same mistake and later had to eat their words as Bitcoin proved them wrong. However, Novogratz criticism of Bitcoin should not be taken out of context as the billionaire was more bullish towards web 3.0 rather than underestimating Bitcoin.
Altcoins Need To Prove Their Worth
Novogratz says that the vast market of altcoins needs to prove their worth and utility in the real world. This is a fair point given most of the altcoins which often boast of being better than the pioneer haven't really made any significant impact through its use, and those outside the crypto space often call them a carbon-copy of Bitcoin. He explained,
“If you really think bitcoin is gonna win this store of value, everything else needs to be used for something”
Novogratz has recently taken a pot-shot at Litecoin this April questioning investor of their investments choice in the altcoin over Bitcoin
“Gold has an $8.5 trillion dollar market cap. Silver is $15bn That is .17%. $BTC has a $90bn market cap. $ltc is $5.7bn which is 6.4% of $BTC. Silver is at least useful for industrial production. $ltc is a glorified test net for $btc. I don’t get this rally. Sell $ltc buy $btc.”
Novogratz statement might not go down too well with the altcoin community, but there is a harsh reality in his words, the altcoin market is truly riding on the Bitcoin's success and popularity.