Long touted as a store of value in times of crisis, gold has since seen bitcoin join it in this category. With the effects of the Covid-19 pandemic helping, several investors and companies have turned to cryptocurrency to protect themselves from inflation. While supporters of the asset have long said it would eventually overtake gold, the opposite side fought back somehow. However, bitcoin’s performance at the end of the year seems to inspire its supporters even more, as evidenced by Mike Novogratz’s latest predictions.
Institutional investors serving bitcoin
Founder of Galaxy digital, M. Novogratz was already talking about the past year the possibility of one day seeing bitcoin overtake gold in the field of market capitalization. At the time of these comments, however, bitcoin was far from showing the current market figures trading at less than $ 4,000. With the record value of 2017 now largely exceeded, he revealed a bit more about how that prediction might come true. He notably mentioned the role of institutional investors, which will be decisive in achieving this ideal. MassMutual having recently invested $ 100 million in Bitcoin, Mr. Novogratz concludes that its adoption by institutional clients was not slowing down.
With this in mind, he took the opportunity to announce that cryptocurrency could cross 10% of gold market cap in 2021. “Bitcoin, right now, is three percent of gold. I think it can easily be ten percent of the gold, which is between $ 60,000 and $ 65,000. I don’t think it’s difficult. I just see more participants coming to the market »He declared. He is not the only one to see bitcoin achieve this performance in the community, joined in this logic by a certain Anthony Pompliano.
See you on December 31, 2029
Following an outing on Twitter on August 15, the co-founder of Morgan Creek Digital set the last day of 2029 as the day bitcoin overtakes gold. This very optimistic forecast therefore suggests that that of Mr. Novogratz is repeated every year, i.e. an average increase of 10%. Even though he lacks credible arguments to support his vision, Mr. Pompliano is convinced that bitcoin will become the new benchmark safe haven. For their part, the supporters of gold with Peter Schiff at their head have not finished minimize the content of such outputs.
It is true that the advent of such a day assumes that the two assets will follow diametrically opposed trajectories. Although this scenario is difficult to imagine, it is still realistic to think that the gap between them could decrease considerably over the years.