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Mike Novogratz Stopped Believing That Bitcoin Could Become “Digital Gold” - Binaryx
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Mike Novogratz Stopped Believing That Bitcoin Could Become “Digital Gold”

The sharp drop in Bitcoin on Friday, March 13 was commented by the CEO of Galaxy Digital, a trading bank, Michael Novogratz. There was something to discuss because for the first time the price of Bitcoin fell to a record low level – $ 4,240. The course overcame a critical minimum indicator, which was recorded on April 2, 2019.

On his Twitter, Michael Novogratz noted:

“Relations with Bitcoin have always been built on trust. But now there is no room to talk about it because the world is skeptical of everything.”

This judgment is misunderstood because more recently Novogratz had the opposite opinion. He believed that Bitcoin has every chance to become “digital gold” shortly and saw great prospects for cryptocurrency.

This is evidenced by his interview with Bloomberg Television in February 2019. Then Novogratz was delighted with Bitcoin and equated its significance with the value of gold.

“Very soon, Bitcoin will rise an order of magnitude higher among other cryptocurrencies. If you look at the periodic table and 118 chemical elements, only gold is the most valuable. And Bitcoin will become “digital gold”

“Bitcoin gives freedom, unlike American, Chinese money. This is independence, which must be expensive. ”

Thus, we see that the opinion expressed by Novogratz on March 13, “to smithereens” broke the idea of ​​Bitcoin as a “digital gold”. He is no longer as confident in Bitcoin as he was before. The open question remains how an experienced trader could not have foreseen the situation with a drop in the market capitalization of Bitcoin. Back in early March, Novogratz turned Bitcoin into a risky asset:

“How did Bitcoin become a risky asset? The fact is that in the current difficult conditions, investors are reducing their leverage. They are interested in assets that offset their losses. ”

Can Bitcoin regain investor confidence in itself? A very accurate answer to this question was given on Twitter by the developer of the Lightning Network, Pierre Rocheard. He noted that there are 4 powerful factors for this:

“Confidence in Bitcoin will be restored due to its resistance to fluctuations in market conditions, internal censorship, globalization and easy access from anywhere in the world, increased security and reliability of monetary policy”