The highest the cryptocurrency market valued was $900 billion, but predictions of cryptocurrency moving onto $20 trillion has been made. These predictions are by the billionaire cryptocurrency investor and former Goldman Sachs trader, Mike Novogratz.
Mike Novogratz made these predictions at the Bloomberg Invest Summit in New York. Erik Sctatzker asked him about the criticism from skeptics about the volatile nature of cryptocurrencies and the bubble-like trend of Bitcoin in 2018.
Novogratz stated that it was not a bubble but a correction which will be seen in mid-2018. According to Novogratz, this correction will grow to become a cryptocurrency market valued at $20 trillion.
Novogratz defined cryptocurrency’s popularity, “[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.”
The most interesting part about Novogratz is his approach in terms of indicators and statistics which is not bias.
Novogratz pointed out that retail investors and individual traders have time and again rallied the market to a bull state and not the institutional investors.
Institutional investors are more mature with a tendency to require the most stable and robust custodian solutions. Hence it is seen that many cryptocurrency businesses are still building up the base for these custodian solutions, which means that institutional investors are bound to enter later on.
Novogratz further explained, “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].”
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