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Former Wall Street hedge fund manager and popular Bitcoin proponent Mike Novogratz thinks that institutional money will start coming into the cryptocurrency market in the next 6 to 12 months as custody solutions are rolled out.Â
They Wonât âRush In on Day Oneâ
Speaking on Bloomberg Daybreak: Middle East, the CEO at Galaxy Digital laid out his current position on Bitcoin and the cryptocurrency market.
Novogratz acknowledged the tumultuous nature of 2018 for the cryptocurrency market, as a lot of the digital currencies have collapsed in value with more than 90 percent, while the market itself has lost upwards of $700 billion.
However, he also remains firm on his feet, holding that recovery will follow.
He said that all the âretail friends that came up and down are washed outâ and that the market is in the process of âhanding off ownership from retail to institutions.â
The expert outlines that all the architecture which institutions need to âfeel comfortableâ is currently being put in place.
Namely, Novogratz noted Bakkt and Fidelity as important steps in providing trusted custody solutions, saying that they are likely to come in somewhere next month.
However, he also holds that institutions wonât ârush in on day oneâ but they would rather take their time and see some âwater run through the pipes.â
Nevertheless, Novogratz predicts that institutions will allocate a small amount of their assets into the cryptocurrency market over the next 6 to 12 months while clarifying that âa small amount of institutional assets is a lot of money.â
Bitcoin Will Be âDigital Goldâ
Commenting on Bitcoin, Novogratz said that the cryptocurrency âis going to be digital gold.â He outlined that it will be a place where âyou have sovereign money.â
Itâs not USÂ money, itâs not Chinese money, itâs sovereign. And so sovereignty, it costs a lot. It should cost a lot.
Novogratz has said that bitcoin will become âdigital goldâ before. In December 2018, he said:
I do believe Bitcoin is going to be digital gold. That means itâs the only one of the coins out there that gets to be a legal pyramid scheme. Just like gold is.
But heâs also not the only one to compare Bitcoin to the precious metal. In fact, some proponents like Digital Currency Groupâs Barry Silbert have argued that Bitcoin is â50 times more usefulâ than gold.
The popular Bitcoin investors, owners of the Gemini cryptocurrency exchange, Tyler and Cameron Winklevoss, have also said that Bitcoin is better than gold.
Do you think institutional money is coming to the cryptocurrency market? Donât hesitate to let us know in the comments below!
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The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.