Lucas Jackson / Reuters
- Bitcoin bull Mike Novogratz explained two trends caused by a pandemic that accelerated the “cryptocurrency revolution” during a Real Vision interview announced Friday.
- The first: the policy response to the global pandemic, specifically from the US government said. And the second trend: “digitizing everything.”
- “We’re going to look back and in some strange way, this will be a blessing to the cryptocurrency revolution,” said Novogratz of 2020.
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Bitcoin bull Mike Novogratz explained how a coronavirus pandemic accelerated the “cryptocurrency revolution” during a Real Vision interview published Friday.
“In five years from now, we’re going to see 2020, as horrific as corona was, and a lot of people have lost their lives … we’re going to look back and in some strange way, this will have been a blessing to the cryptocurrency revolution, “Novogratz said.
The CEO of Galaxy Digital explained that two pandemic-induced trends are driving cryptocurrencies like Bitcoin and Ethereum to see returns of 216% and 390% so far, respectively.
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The first was the policy response to the global pandemic, specifically by the US government, Novogratz said. The Federal Reserve cut interest rates, lent over $ 1.5 trillion to banks and financial institutions, and increased its US treasury securities purchases in an effort to stabilize the economy when the pandemic struck.
Novogratz added that “there couldn’t be a better macro story,” about owning bitcoin right now.
The second trend that drove cryptocurrencies? Expanding digital life which could lead to more investors feeling comfortable using a digital wallet.
“This digitalization of everything- Zoom is part of our life now,” Novogratz said.
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Other investors have also attributed the crypto 2020 boom to the macroeconomic background that has developed during the year.
Earlier this month, former crypto skeptic and co-head of Bernstein Research’s portfolio strategy, Inigo Fraser-Jenkins, told clients that the pandemic has changed the policy environment, debt levels, and investor diversification options and made bitcoin an asset attractive.
The increasing fiscal expansion and the higher likelihood of inflation have sent investors looking for a hedge of inflation and a store of value for bitcoin.
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