Former Wall Street hedge fund manager and prominent investor Mike Novogratz recently said that Bitcoin could break the coveted $10k mark soon and jump to $20,000.
He also noted that the digitalization of money had begun worldwide, and the US needs to catch up with other nations such as China.
Bitcoin To $20K, Says Novogratz
Novogratz is the CEO of the cryptocurrency investment firm Galaxy Investment Partners and a long-time Bitcoin proponent. In mid-2019, he predicted that BTC would return to its all-time high price of $20,000 by the end of the year, which didn’t happen.
The primary cryptocurrency descended in value towards the end of 2019, and Novogratz made another forecast that it will finish 2020 at about $12,000. In a recent interview, however, he appeared much more bullish regarding the upcoming price developments.
While he refuted any assumptions that Bitcoin could displace the dollar as the main currency in the US anytime soon, he noted that people are turning to BTC and gold for the same reasons, which could ultimately boost the prices:
“Why are people buying Bitcoin? They are buying it because of the same reason they are buying gold. Gold is on the highs, Bitcoin has come from being sold-off below $5,000, and it’s back at almost $10,000.
Because people worry that the Fed and the Treasury are printing and buying too many dollars. We got this unholy alliance between huge fiscal stimulus by the Treasury and the Fed financing the whole thing.”
Therefore, as excessive amounts of USD continue to flood the economy, the dollar could experience a massive devaluation, Novogratz added. To fight these adverse consequences, people “are using Bitcoin as a hedge for that.” As such, he continued that “it will surprise me if we don’t take down that $10,000 soon, and after that, you are going to see $14,000 and then $20,000.”
It’s worth noting that another prominent investor and hedge fund manager, Paul Tudor Jones III, also believes that Bitcoin could serve as a hedge in these times of economic uncertainty. He said recently that he’s purchasing the asset to fight possible inflation rate increases.
Novogratz also touched upon the topic of transitioning into a financial system entirely dominated by electronic transactions. He said that 93% of all transactions in China are completed electronically, while the US seems to be falling behind.
“We’re moving into a digital era. And we’re still talking quarters vs. nickels. We need to get our act on the ball fast, or the US is going to fall way behind.
It’s almost impossible for me to think that at some period of time, we won’t have stablecoins or crypto version of the dollar. They will really become what we are transacting.”