Regardless of volatility and the last week’s parabolic arc, many traders like the upward float of Bitcoin right now as it hovers around $11,399 at press time.
In that context, there’s a lot of speculation about where value will eventually land when the movement stops – will Bitcoin crumple back down under $10,000 or march higher toward $20,000?
One of the most followed crypto fans holding Bitcoin seems to think that the asset has further to go.
Galaxy Digital’s Mike Novogratz feels like the current rally is just the beginning.
“I don’t think I’m selling the next time we’re up to $14,000,” Novogratz said recently according to recent reports. “I think the next time we get up there it’s closer to $20,000 … I don’t expect that in the next few weeks, I don’t expect it till the middle or the end of the fourth quarter.”
In reporting at Cointelegraph, Marie Huillet talks about some of Novogratz’ comments on potential growth, comparing Bitcoin to gold.
“In the longer term, Novogratz argued that bitcoin is carving out its niche as a form of digital gold, and that we can expect it to hit a $40,000 valuation and potentially much higher over time,” she writes. “Given physical gold’s current market cap of $8.5 trillion, bitcoin still has some way to go before it catches up, he conceded — yet emphasized that the coin has become legitimized as a real, hard asset with a fixed supply and robust technology.”
It’s kind of a strange tack by Huillet, because obviously a nascent cryptocurrency isn’t going to rival one of the world’s oldest and most durable forms of value in terms of its market capitalization – even in today’s high-tech world, gold remains “man’s treasure.”
However, some cryptocurrency enthusiasts feel that Bitcoin and some other coins will eventually carve out places for themselves in the financial world.
There are many reasons to love Bitcoin right about now – trading volume, institutional moves and government adoption being three of them. Last but not least, though, is the idea that as the world global equity market sours, investors will be looking for alternatives.
We’ve been reporting on the punishing effect of US/China trade conflict for weeks, and new reports of erratic presidential protectionism against the European Union are leaving investors and analysts confused and worried about whether highly capricious administrative moves will ‘break the market.’
In that context, many are keeping an eye on Bitcoin as an asset, thinking that it’s going to pick up the slack.
A more nuanced take posits that crypto will take off big based on various future innovations. One such analysis comes from Daniel Jeffries, who appears in a video broadcast this morning (sidebar on linked page) talking about the “keys to crypto.”
Citing the unresolved issue of scaled decentralization, Jeffries urges patience.
“We’ve been trained by WIRED magazine to think that technology changes every 15 minutes,” he says, “but problems that are unsolved still take a long time.”
Other “keys” Jeffries mentions include solving a poor user experience, and eliminating centralized choke points.
Keep an eye on these types of developments to see how BTC and other coins benefit from disruption in fintech.