Bitcoin proponent Mike Novogratz has previously stated that the total market capitalization of cryptocurrencies would reach $800 billion before the end of 2018. He has now retracted this statement but reiterated that he is adamant that it will hit $800 billion within the coming 12 months.
More specifically, these comments came during an interview with CNBC at the South Korean Beyond Blocks Conference. With a current cryptocurrency market capitalization of around $300 billion, reaching $800 billion within 12 short months would represent a significant increase.
Novogratz also touched on the differences that exist in the cryptocurrency market today compared to during the Bitcoin high of nearly $20,000 during December of 2017. He stated that he believes that the bottom has been reached.
Moreover, Novogratz noted that ”we are building a nice bottom for the next move up”, and went on to argue that more comprehensive custody guidelines and regulations will accelerate this increase in adoption and, subsequently, price.
Novogratz also pointed to the increasing global adoption of cryptocurrencies as something that will drive the market capitalization of the virtual currencies to a staggering $800 billion.
Furthermore, he noted how an increasing amount of people are going to cryptocurrency conferences as yet another positive sign, as well as joining blockchain and cryptocurrency-related startups and businesses.
Novogratz also mentioned the prospect of more private institutions entering the market through funding cryptocurrency companies by way of VC funds as another factor that could boost the total market capitalization of the cryptocurrency sector.
The key to attracting institutional investors, Novogratz argued, is through improving custody. Novogratz stated that as soon as major Wall Street actors and institutional banks, such as Goldman Sachs, enter the playing field, seasoned institutional investors will flock to invest in cryptocurrencies.
Although some services, such as Coinbase Custody and BitGo, already exist, Novogratz argued that these have not been successful in attracting institutional investors.
Nonetheless, Novogratz went on to note that he believes that the real ”tipping point” will be when modern pension funds start investing in cryptocurrencies. This would entail a major influx of capital into the cryptocurrency market and would mark a significant step for cryptocurrencies.
The introduction of cryptocurrency custody solutions from established actors could see institutional investors faced with FOMO – fear of missing out – with could prompt them to get onboard the cryptocurrency train sooner rather than later.
Toshi Times has already covered the matter of Bitcoin ETFs, which the US SEC is currently deciding whether to green light or not. If exchange-traded Bitcoin funds would become a reality, this could also facilitate a great deal of investments aimed at the cryptocurrency sector.
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Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.