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.

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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

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