Cryptocurrencies

Mike Novogratz claims Bitcoin will become ‘digital gold’

Galaxy Digital CEO Mike Novogratz has predicted that Bitcoin will one day become “digital gold,” citing sovereignty as a key aspect behind its future value.

The 54-year-old former Goldman Sachs executive, who has been a keen cryptocurrency advocate over the past few years, revealed he held 20% of his net worth in Bitcoin and Ethereum in 2017.

Over the weekend, Novogratz advised “all the big macro funds should hold a small percentage of Bitcoin,” claiming that it seems like a logical approach.

In an interview with Bloomberg, Novogratz drew comparisons between gold and Bitcoin by saying: “There’s 118 elements on the periodic table, and only one gold […] Bitcoin is going to be digital gold, a place where you have sovereign money, it’s not US money, it’s not Chinese money, it’s sovereign. Sovereignty costs a lot, it should.”

In spite of dubbing Bitcoin as the future “digital gold,” Novogratz described the ongoing cryptocurrency bear market as an example of “how painful popped bubbles can be.”

Galaxy Digital Holdings recorded a $136 million loss in the first nine months of 2018, but Novogratz remains bullish in the medium term, stating that $8,000 could be a likely stopping point for Bitcoin in 2019.

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Oliver Knight

Londoner ‘Ollie’ graduated from Birmingham City University with a journalism degree in 2016. He combines his writing with his love of crypto and blockchain here at Coin Rivet, saying “It disrupts well-established institutions (banks) while giving an avenue to the less fortunate to achieve financial freedom.” Like all true Londoners, his pet hate is… “People standing on the left-hand side of the escalators on the Tube!”.