Wall Street’s very own popular former executive Mike Novogratz thinks that blockchain and cryptocurrency are ‘still five to six years away.’ This prediction was made at Beyond Blocks conference in South Korea.
Mike Novogratz has had an interesting career from being a partner at Goldman Sachs to an ex-hedge fund manager at Fortress Investment Group. He has even been ranked as a billionaire by Forbes in 2007 and 2008. Currently, he is well respected in the cryptocurrency community as he is the founder of crypto investment firm Galaxy Digital.
Galaxy Digital was in the limelight 2 months ago in May when launching an index together with Bloomberg. This index is called the Bloomberg Galaxy Crypto Index and will track the biggest and most liquid virtual currencies.
Novogratz at the South Korean conference emphasized that companies will flood into the blockchain and cryptocurrency industry in the next two to three years. However, he said, “You won’t see mass adoption until the user experience does not feel like something new and that is still five to six years away.”
Novogratz gave two logical reasons to the delay in the mainstream adoption of the advanced technologies. One was the increasing expense of talent in the industry as not many had the expertise in blockchain technology. While the other was the doubt, investors have in a system of companies which are never heard of in contrast to known financial institutes they trust.
“Think about how institutional investors operate. It’s hard to tell your boss ‘I have money in places you have never heard of.’ You need a trusted, name custodian — a Japanese bank or HSBC or ICE or Goldman Sachs — to allow institutional investors to feel comfortable,” Novogratz said.
Mike Novogratz made spectacular predictions last year of Bitcoin touching $10,000 and Ethereum growing towards $500 by the end of 2017. In fact, both the projections seemed unlikely but came true when Bitcoin went on to $20,000 and Ethereum jumped to $1,300 which were both more than double the predicted value of Novogratz.
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