Billionaire Bull Mike Novogratz: Cryptocurrency Will Become a $20 Trillion Market
During one of the interviews that was solely focussed on the cryptocurrency markets and the economics of it, Billionaire Bull Mike Novogratz was asked by the interviewer then regarding the rapid changes and the movement in the valuation of the cryptocurrency market that were coming about as criticism from skeptics and whether the market was going to face a bubble burst or not in the early 2018.
He only goes on to clearly state that the January bubble was in fact not actually a bubble. He rather stated that the bubble situation that the crypto field in facing now is something similar to the dot com bubble that the industry had then faced in the year 1999. Prior to the bubble burst in the year of 1999, the year 1996 had also witnessed a similar scenario wherein which there was almost a bubble burst. The dot com bubble had reached a valuation of a huge staggering rate of USD 6 trillion dollars before they had made their burst and the valuation dropped down to USD 1 trillion.
He then goes on to mention that the cryptocurrency bubble-to-come yet scenario that we face is the same and is in fact not going to end up in a bubble of any such sort. Novogratz said, “[Cryptocurrency] is a global revolution. The internet bubble was only a US thing. It was rich US people participating. [Cryptocurrency] is global. There are kids in Bangladesh buying coins. It is monstrous in Tokyo, in South Korea, in China, in India, and in Russia. We’ve got a global market and a global mania. This will feel like a bubble when we’re at $20 trillion.”
Novogratz later explained, “It won’t go there ($20 trillion) right away. What is going to happen is, one of these intrepid pension funds, somebody who is a market leader, is going to say, you know what? We’ve got custody, Goldman Sachs is involved, Bloomberg has an index I can track my performance against, and they’re going to buy. And all of the sudden, the second guy buys. The same FOMO that you saw in retail [will be demonstrated by institutional investors].”