In an interview with BBC World News yesterday, CEO of Galaxy Digital Mike Novogratz discussed the impact of governments monetary policy and the adoption of institutional investors on the soaring price of leading cryptocurrency Bitcoin (BTC).
Novogratz argued that governments quantitate easing measures have contributed to “debasing fiat money”, driving demand in alternative asset classes like Bitcoin. His second point revealed how the story of value has changed for BTC from being a “fringe product” to a “hard asset” citing the adoption of “macro hedge funds, insurance companies and asset managers” in recent times.
Fun on the BBC. pic.twitter.com/mTSNXMVceZ
— Mike Novogratz (@novogratz) January 3, 2021
Novogratz praised Bitcoin’s fixed supply model in juxtaposition to the infinite supply of the world’s reserve currency US dollar.
“As the institutions move in, there just is not a lot of supply… There are 21 million Bitcoins that will ever be mined… and there are a lot more than 21 million millionaires out there.”
“Bitcoin is owned by more than 110 million people around the world” showcasing that – second to the US dollar – it is “the single biggest distributed asset in history.”
Investors and advocates of the leading cryptocurrency were quick to point out that following BTC’s price surge above $30,000, one BTC could now purchase a standard Tesla Model 3 car. That’s 5.3s 0-60mph for a single Bitcoin!
The BTC weekly candle closes yesterday at $33,100 with highs of $34,800, before pulling back slightly today to the current value of $30,600. These fluctuations and price pullbacks are common in an asset in price discovery zones above existing all-time highs.
Global Macro Investor Raoul Pal assessed the potential growth of BTC in relation to the currency’s halving schedule, suggesting that price could reach the astronomical value of “between $400k and $1.2m by end of 2021.”