Bitcoin Will Reach $500,000 In The Next 5 Years.

According to remarks made by Novogratz at the Bloomberg Crypto Summit, Bitcoin (BTC) will surely reach $500,000 in the following five years or so because of its distinct characteristics and rate of adoption, according to eMoney Financial on July 19.

He mentioned the fact that Bitcoin was “tailor-made to being an anti-inflation store of value” and that it was “easily transferrable and so it’s better than gold in so many respects” as some of its unique characteristics.

The wealthy ex-fund manager further claimed that excessive consumer price inflation was being fueled by the debt-driven global banking system and that Bitcoin would be a useful long-term asset to keep.

The latest instability in the cryptocurrency market, according to Bloomberg’s Misyrlena Egkolfopoulou and Sonali Basak, is a “full-fledged credit crisis.” Novogratz even acknowledged that he was “darn wrong” about the extent of the leverage in the system.

“What I don’t think people expected was the magnitude of losses that would show up in professional institutions’ balance sheets and that caused the daisy chain of events. (…) It turned into a full-fledged credit crisis with complete liquidation and huge damage on confidence in the space.”

Notably, Novogratz played a significant role in promoting Terraform Labs as well. He acknowledged that the company’s failure taught him that the market and retail investors “really had very, very little concept of risk management.”

Novogratz added that his heart doctor lost $1 million in the Celsius collapse and criticized authorities for not doing enough to safeguard small investors and for allowing institutions to use excessive amounts of leverage.

But he also expressed his belief that the crypto market’s “worst is over” and that the case for Bitcoin was still compelling, particularly in light of the war against inflation being waged by central banks all over the world.

Back in June, Novogratz predicted that the Federal Reserve would need to relent and “take its foot off the brake” in order for the cryptocurrency market to recover and that the bulk of hedge funds investing in cryptocurrencies would fail.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Patrick

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