On Wednesday (March 31), Billionaire investor Mike Novogratz shared his latest thoughts on Bitcoin.
Former hedge fund manager Novogratz is the Founder and CEO of Galaxy Digital, “a diversified financial services and investment management innovator in the digital asset, cryptocurrency, and blockchain technology sector.”
His comments about Bitcoin during an interview on CNBC’s “Squawk Box” at a time when Bitcoin was trading around $58,121.
When asked by Squawk Box co-anchor Andrew Ross Sorkin, how far the price of Bitcoin could go, Novogratz said:
“At the beginning of the year, I thought 60,000 was my target because that would have been 10% of gold, but I told myself and… our investors that once it gets to 10%, we’re all going to say ‘it’s going to 20%’ and then when it gets to 20%, it’s going to go to 50, and then to a hundred.
“I do think Bitcoin is on an inevitable path to have the same market cap and a higher market cap as gold, and so it’s just how fast adoption happens. Adoption’s happening faster than I had predicted. It’s shocking to me how fast people are moving into the system and how short people are… Because once you decide it’s an asset class, if you’re not long, you’re short, and most people don’t have Bitcoin in their portfolio yet and they want to at least have something.“
This is probably the first time that Novogrtaz has said that he believes that Bitcoin’s market cap will be larger than gold’s market cap. Since gold’s market cap is around $11 trillion and Bitcoin’s market cap is currently around $1.1 trillion, it means that he thinks that the Bitcoin price will eventually be 10x what it is today, i.e. around $600,000.
Novogratz was asked by Squawk Box co-anchor if the news about Goldman Sachs’ plans to offer Bitcoin-related investments to the clients of its private wealth management division meant that it was likely for Bitcoin to get banned in the U.S.
“The more people involved in the space, the more big firms, if it’s Tesla or MicroStrategy or Goldman or Morgan Stanley, the more wealthy individuals, the harder it is politically to say, ‘hey, we don’t like this anymore’, right?
“And so, I think we’ve already crossed the Rubicon. There are 34 million Americans that own Bitcoin, a lot more single issue voters. I think it would be politically really unpopular to do something that’s gonna hurt all that wealth.
“I also think when we talk to people at Treasury, when we talk to people at SEC or CFTC, the young people completely understand this is coming and they are working really hard to make sure we have smart regulation and that we understand it.
“Listen, some of the senior people are still being educated… A consortium of crypto people [is] coming out with a paper that [will] really address a lot of the… FUD stories around crypto.“