Bitcoin [BTC]’s dominance over the cryptocurrency markets cannot be ignored. Moreover, the price movements on Bitcoin [BTC] controls the sentiments of the entire market. Nevertheless, there are a plethora of cryptocurrencies in the market with Facebook’s ‘Globalcoin’ reportedly, lining up for next year well.
Mike Novogratz, a Bitcoin ‘permabul’ and investor, feels that Facebook’s cryptocurrency is ‘wildly important’ for Bitcoin. This is because Facebook’s coin will probably be released as a stablecoin. However, Bitcoin will lead the space as the store of value. He also cited the discrepancy between the current market capitalization of gold and Bitcoin at the moment. He said in a recent interview with CNBC,
“Bitcoin really has established itself as a store of value. [Bitcoin and Gold] is Worth something only ‘coz its worth something. What’s Gold intrinsically worth? You could take all the gold in history and put it in three Olympic swimming pools and it’s worth 8.5 trillion dollars. Why?… We don’t use gold for anything another than to show our wealth.” He also said, “There is a long way between $140 billion and $8.5 trillion. “
On the institutional and retail investment, he said,
“Retail is still buying Bitcoin. Yale Endowment, moved into Bitcoin, Stanford Endowment, Moved into Bitcoin and Howard’s endowment has moved into Bitcoin. These are real names and real thoughtful investors.”
He also mentioned Microsoft’s move into providing identity solutions on Bitcoin. Therefore, he sees a lot of potential in Bitcoin as a store of value. Moreover, he also feels that Facebook builds a case for Bitcoin as a store of value, and there is no one better at it.
Last but not least, while Mike Novogratz sounds like a total Bitcoin Maximalist, he also believed in Web 3.0. He mentioned that Ethereum and EOS could transform the internet as well. Nevertheless, according to him, it could take two-five years to build that space.
Do you agree with Mike Novogratz? Please share your views with us.
Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com