Mike Novogratz Thinks Gold's Near 8 Trillion Market is Small Fries for Where Bitcoin is Going

Bitcoin (BTC) has been several times compared to gold and how it shares some features with the precious metal. This time, Mike Novogratz, the CEO fo Galaxy Digital, explained that Bitcoin could easily reach gold’s market capitalization. Although he admitted that this could take over 20 years, the possibilities exist.

Bitcoin Or Gold As A Store Of Value?

In a recent conversation that Novogratz had with Anthony Pompliano, the co-founder and partner at Morgan Creek Digital, he said that Bitcoin provides an alternative to gold. At the same time, he discussed how Bitcoin is a cheap and fast way to transfer money around the world.

About Bitcoin becoming a store of value, he commented:

“I think of gold as a store of value. Bitcoin provides a really interesting alternative to gold. Forget the other stuff that might come out of it. Forget the layer 2 solutions and payments and everything else. Just as its core, sovereignty should be expensive.”

In addition to it, Novogratz said that he processed a transfer to a friend. He sent $10,000 worth of Bitcoin and he paid only six cents. The intention was to show that sending a large transaction was not expensive at all.

Now, developers are working on implementing the Lightning Network (LN), the ultimate scaling solution for Bitcoin. With it, users would be able to process thousands of transactions per second and for just a few cents.

Novogratz explained that Bitcoin is still far from reaching gold’s market capitalization. Indeed, Bitcoin’s market cap is still 100 times smaller than gold’s market cap. Moreover, he does not see any reason why Bitcoin would not be able to reach gold’s market cap in the future. For him, this could take over 20 years.

Additionally, another important discussion in the cryptocurrency space is related to traditional investors entering the market. During the last years, space has focused on retail investors. In the future, traditional investors and institutions could play an important role in the market.

There are some companies that are currently creating the necessary infrastructure for these traditional investors to place their funds in the industry. Two of these firms are the Intercontinental Exchange (ICE) that wants to release the Bakkt platform and Fidelity Investments that opened a new branch called Fidelity Digital Assets and that has already been working with some selected customers.

Today's BTC, ETH, LTC, and XRP Coin Analysis: Top Cryptocurrency Forecast and Predictions

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Carl T
Carl T
Carl is a legend in cryptocurrency space for his long-storied experience, history and insights. He is a digital nomad who fell in love with bitcoin and its offspring for many years now and prides himself on delivering quality perspectives in the emerging world of crypto-assets and blockchain technology.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

The Mysterious Entity that Caused the Bitcoin Network fees to Jump 146% in May

Bitcoin price has yet again taken a dive to $8,800, recording a drop of 4%. Meanwhile, Network Demand Score which is a metric incorporating network...

Ledger and Trezor Crypto Wallets Dismiss ‘Rumored’ Hack Through a Shopify Exploit

A hacker has allegedly compromised the databases of Ledger, Trezor, Keepkey and Shapeshift hard wallets in a Shopify exploit. These storages are considered to...

Tulip Trust Addresses are Used by Someone to Sign “Craig Wright is a Liar and a Fraud”

Some of the addresses that Craig Wright, who claims himself to be the pseudo-anonymous bitcoin creator Satoshi Nakamoto, has filed in the ongoing court...

Bitcoin Market Outlook: A Long Game Looking Bearish in the Short Term

Last week, the price of bitcoin dropped below $9,000 and has been trading under $9,300 throughout the week. On the weekend, we yet again dropped...

Institutional Investors Are Scooping Up All the Newly Minted BTC, Leaving Not Much Left to Buy

Over the last three months, Grayscale Investments bought up to 33% of all newly minted bitcoin. The asset manager continues to stockpile the world’s leading...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today