Source : bloomberg
Despite the growth since its inception, the crypto industry still has many opponents, but there is no shortage of optimistic defenders, including Mike Novogratz, CEO of the cryptocurrency investment firm from Digital Galaxy.
Speaking at Bloomberg Crypto Summit, Novogratz said Bitcoin (BTC) will definitely hit $500,000 in the next 5 years or so, due to its unique characteristics & pace of adoption, eMoney Financial reported on July 19.
Among the special characteristics of Bitcoins, he listed the fact that it was “tailor made to being anti-inflation store of value” as-well-as being “easily transferable and is therefore better than gold in many ways”.
The billionaire former ex-fund manager also said that the debt-based global financial system is causing excessive consumer price inflation, and that Bitcoin could work-as a unique way to store-wealth over the long-term.
Unexpected amount of leverage
Bloomberg’s Misyrlena Egkolfopoulou & Sonali Basak reported on July 19 that Novogratz admitted that the recent cryptocurrency market turmoil was “full fledged credit crisis” and admitted he was “dam wrong” about magnitude of leverage in the system.
“I don’t think people expected the magnitude of the losses to show up on the balance sheets of professional institutions that caused the daisy chain of events. (…) It turned into a full fledged credit crisis. with a complete liquidation and damage on confidence in space.
Novogratz was also one of the major promoters of Terraform Labs, acknowledging that the lessons he learned from the collapse were that industry and individual investors “had a really, very, very little concept of risk management.”
Novogratz also criticized regulators for not doing all they could to protect retail investors and let institutions take on enormous leverage, added that his cardiologist lost $1 million in the Celsius collapse.
However, he also said that “the bad is over” for the crypto market and that argument for Bitcoin remains strong, especially as central banks around the world fight inflation.
In June, Novogratz made his predictions that for the crypto market to recover, the Federal Reserve would have to back down and “take their foot-off the brake,” as well as that most hedge funds investing in digital currencies would go bankrupt, as reported Science Atom.
