- Bitcoin will have a higher market cap than gold,’ Novogratz says.
- BTC’s market cap currently 15% of gold’s cap.
Galaxy Digital CEO and billionaire, Mike Novogratz believes Bitcoin (BTC) will outgrow gold as a store of value in the near future if current bullish momentum continues. The top crypto asset, which has surged in 2020 to a $1.8 trillion cap, will surpass or equal gold’s market cap in the process, he added in an interview with CNBC on Wednesday.
However, Novogratz does not believe BTC will be adopted as a global currency. He believes Bitcoin has grown into a stable asset with strong fundamentals as a store of value.
“I don’t think so,” he responded to a question on whether Bitcoin will become a global currency. “I think Bitcoin is a typical asset. I think it is gold.”
"#bitcoin is on an inevitable path to have the same market cap then a higher market cap as gold," says @Novogratz. "It's just how fast adoption happens. Adoption is happening faster than I had predicted." pic.twitter.com/rKs5YCskw7
— Squawk Box (@SquawkCNBC) March 31, 2021
Since the turn of the year Bitcoin has increased 101%, despite breaking its previous three-year all-time high in December 2020. At this time last year, Bitcoin’s total market cap was only 0.9% the total global market cap of gold which stands roughly at $12 trillion. With a steady rise to $58,500, as of writing, the total BTC market cap stands at 15% of gold’s – threatening a flipping of gold as the king SoV, Novogratz further said.
“Bitcoin is on an inevitable path to have the same market cap then a higher market cap than gold,” he said. “It’s just how fast adoption happens.”
And adoption is happening fast as institutions quickly catch on to Bitcoins utility and value. Earlier in the day, Goldman Sachs announced plans to start offering their wealth asset management clients Bitcoin, stating the asset’s value proposition and returns. This follows recent additions of Bitcoin to PayPal merchant checkout payment and Visa’s integration of Ethereum to settle transactions faster using USDC.
He further advised the ‘no-coiners to have some exposure on Bitcoin to avoid missing out on the massive gains of the asset.
“If you are not long, you are short Bitcoin, and most people do not have Bitcoin in their portfolios yet and they at least want to have something,” Novogratz explained. “Two to four percent, or 1% to 2% for the more conservative ones.”