Bitcoin has surged in recent weeks, crushing its peak in 2017 and treading fresh ground for the first time in three years.
The bitcoin price has more than doubled in the past two months, a bull run that began with massive paypal payouts
Now, a former bitcoin and crypto investor who turned hedge fund billionaire Michael Novogratz has said he can see bitcoin hitting $ 50,000 next year – predicting bitcoin will eventually become “gold eclipses”.
“It’s easy for me to see bitcoin at $ 50,000 next year,” Novogratz told Raoul Pal, chief executive of financial research and media company Real Vision in an interview last week, explaining: “That’s 10% gold. “
Bitcoin has developed its reputation as a digital gold amid the government’s coronary virus and subdivision pandemic spending spree, attracting the attention of many big-name investors who see bitcoin as a safe haven asset and an emerging inflation hedge .
“I know once we get to 10% gold, we’re probably why it’s only 10% gold,” Novogratz asked. “Why isn’t it 25% gold? Then it’s going to eclipse gold at one point.”
While Novogratz does not expect the capitization of the bitcoin market to soon pass gold— ”I guarantee it won’t happen in a year” – it sees recent developments accelerating bitcoin growth.
“These things happen faster when you get these network effects,” added Novogratz, a Goldman Sachs veteran who started investing cryptocurrency in 2013 and left Fortress Investment Group in 2015 to focus on bitcoin and crypto.
Last week, British fund manager Ruffer Investment Management revealed it had bought $ 745 million worth of bitcoin, which was taken broadly as a sign of growing institutional interest.
Earlier this month, Ray Dalio, the legendary billionaire founder and co-chairman of the world’s largest hedge fund, Bridgewater Associates, admitted that bitcoin had established itself as “a gold-like asset alternative.”
Novogratz, meanwhile, said it believes the coronavirus pandemic has accelerated the “upcoming cryptocurrency revolution,” highlighting the US government and Federal Reserve’s response and “digitizing everything.”
“We’re going to look back 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 is going to have been a blessing to the cryptocurrency revolution for the community. “
“There couldn’t be a better macro story. We couldn’t write one better than owning bitcoin as a hard asset right now.”