In an interview with CNBC’s Squawk Field, Novogratz said cryptocurrency “adoption’s occurring a lot quicker than I predicted,” including that “it’s stunning to me how briskly individuals are transferring into the system.”
Novogratz, who has been involved in Bitcoin since 2013 when the digital forex was valued at round $100, defined that his earlier BTC worth goal of $60,000 was too conservative. The preliminary goal was based mostly on Bitcoin reaching roughly 10% of gold’s market capitalization.
“Initially of the yr, I assumed $60,000 was my goal as a result of that might have been 10% of gold,” he mentioned. “However I advised myself and our traders that after it will get to 10% we’re all going to say it’s going to twenty%, after which when it will get to twenty% it’s going to go to 50% after which 100%.”
Bitcoin’s emergence as “digital gold” has strengthened Novogratz’s conviction that the cryptocurrency will finally attain or exceed bullion’s market worth:
“I do assume bitcoin is on an inevitable path to having the identical market cap after which a better market cap as gold.”
Present estimates place the full market capitalization of gold at roughly $10.7 trillion. Bitcoin, against this, has a complete market worth of $1.1 trillion.
Bitcoin appears to be outshining gold in the battle of the safe havens, with some outstanding analysts claiming that BTC is taking market share away from the yellow metallic. In December 2020, JPMorgan Chase strategists mentioned Bitcoin’s ascendance would function a headwind for bullion in the short term.
One Bitcoin is presently worth 34.49 ounces of gold. This time final yr, the ratio was round 4.19 ounces.