Recently, Mike Novogratz, CEO and founder of Galaxy Digital, spoke about Bitcoin [BTC]Growth, Bakkt and institutional investors entering the cryptocurrency space, during an interview with CNN.
Novogratz said that the cryptocurrency space has already witnessed a sharp sell-off and that the price position of Bitcoin on the market is "far better" than Ethereum [ETH] and other cryptocurrencies. He went on to say that there are several factors contributing to BTC's position in the market. The main reason is that it became a valuable digital store and was also the first digital asset.
The Founder said that people started investing in the store of value and this is itself a significant factor. He said:
"… in 10 years someone has created this idea that now has a value of 120 billion dollars and does not need a case of use also to make it valuable."
In addition, Novogratz talked about the fact that Bitcoin is a blockchain player or a Fintech player for investors. He said he sees it more as a blockchain player and that Bitcoin is a digital gold that has a store value similar to that of Gold. He went on to say that when younger generations grow older, they are "much more comfortable in a digital world".
"… it only makes sense intuitive, like why I should not have Bitcoin"
The Founder also spoke about security problems in the cryptocurrency space. According to him, there was fraud and theft around the Bitcoin ecosystem. He said that hacking and theft occurred during the acquisition of cryptocurrency in and out of exchanges and portfolios. However, this is currently being processed and space becomes safer with the passage of time, he said.
Novogratz also said that space is seeing a significant influx of institutional investors. He said he believed in the parent company ICE Bakkt of the New York Stock Exchange, which will be launched in November 2018, a partner of Galaxy Digital. He went on to say that once Starbucks and Microsoft started using Bitcoin as one of the payment tracks after the exchange was launched, the use of cryptocurrencies will increase dramatically.
In addition, he said that there is an unexpected "institutional FOMO" in place in the cryptocurrency space and the space will see great announcements in the future. He said that Goldman Sachs announced the launch of their custody, and once there have been custody and service agents in space, it will open doors for pension funds and endowments.
According to him, there are already great endowments involved in cryptocurrencies through the venture capital space. He also added that he considers Bitcoin separately from the rest of the coins in space.
Novogratz said that Bitcoin [BTC] and other cryptocurrencies will see an increase of around 30% towards the end of this year. However, he believes that the market is going to "run massively" only when institutional investors are about to intervene in space and start buying a lot of cryptocurrencies and its picture is currently being implemented.
"It will be announced in the coming months, but it will take some time to go through the investment committees and what not, so I would say that the first quarter of next year you will really start to see it move."