Bitcoin is one of the most iconic investments in history. Sceptics will tell you that it is a bubble waiting to pop. However, believers will tell you that it is a bubble that will never stop expanding.
Mike Novogratz, founder and CEO of Galaxy Digital, is one of the world’s biggest believers in cryptocurrencies. He recently encouraged investors to look beyond the usual massive swings that bitcoin takes and focus on the bigger picture.
According to Mike Novogratz, bubbles happen around things that essentially change how we think, and he is confident that decentralised systems will disrupt finance.
CoinDesk data shows that Bitcoin has gone up by 45% this year and about 300% in the last 12 months.
Novogratz noted that a lot of focus on Bitcoin is on the underlying technology. However, he thinks the cryptocurrency space represents a new investment identity beyond just the returns. Betting on Bitcoin is essentially believing in a vital transformation of how money works today.
Bitcoin traded below $43,000 on Thursday, but Novogratz expects it to rise to more than half a million in the next ten years. But while bitcoin is the largest and most popular cryptocurrency, there are thousands of cryptos with much smaller market capitalisation. Novogratz added that 75% of cryptos might not make it through the next decade.
New Regulations Coming?
Although the cryptocurrency sector is filled with hungry investors and numerous opportunities to put money to work, regulation is one dark cloud hovering over it.
It’s unclear which regulatory body should oversee the crypto industry, partly because it’s not clear if cryptocurrency is a form of security or a currency. According to Novogratz, some form of regulation would be helpful, but freedom to innovate is crucial.
Tavonia Evans, the founder of crypto Guapcoin, meant to strengthen the economic voice of the Black community, states that “We’re all for regulation in the space”. As a result, she has been reaching out to regulators to collaborate in making rules that don’t stifle the cryptocurrency industry.
