LeapRate's Daily Forex Industry Newsletter
Join now to receive first access to our EXCLUSIVE reports and updates.
Screenshot of a breaking news alert e-mail from Q2 2017
Mike Novogratz, the current CEO of Galaxy Investment Partners and the former macro hedge fund manager at Fortress Investment Group, is predicting a $2 trillion market capitalization of cryptocurrencies by 2018.
After he expressed his opinion on Bitcoin hitting $20,000 by December 2018, he is now defending the idea of cryptocurrencies increasing their market cap to $2 trillion by the end of next year. In an interview for CNBC, Novogratz said that although some corrections are certainly expected, the potential and soundness of the crypto market is strong.
“I have a sense that this is going to go a lot further. When I try to think of valuation, bitcoin really has taken the use case of digital gold, estimating that bitcoin would need to increase another 30 to 50 times to reach parity with gold capitalization.”
What the billionaire has repeatedly emphasized is that while many believe bitcoin is a bubble, including prominent professors from Cambridge and Yale, such as Robert Shiller, Novogratz believes that the market is too small to be compared to the dot-com bubble, for example. He has around 30% of his portfolio invested with cryptocurrencies, as reported by Cryptocoinsnews.
“The whole market cap of all [cryptocurrencies] is $300 billion. That’s nothing. The NASDAQ at its high, in the 1999 bubble, was $6 trillion, and the NASDAQ was a U.S.-led bubble. Cryptocurrency, on the other hand, is “a global phenomenon,” with the majority of trading volumes concentrated outside of the U.S.”
One parallel that he draws consistently is the similarity between gold and bitcoin. While gold has around $7 trillion in market capitalization, cryptocurrencies today total around $200 billion. With the rapid growth of the crypto market, it is no wonder if the world sees a single Bitcoin coin at $20,000 and a market cap of digital currencies at $2 trillion.