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Bitcoin is among the most polarizing investments in history, ask a skeptic, and he’ll tell you it’s a bubble about to burst. Then ask a pro, and they’ll tell you it’s a bubble that will keep expanding forever.
Mike Novogratz, founder and CEO of crypto fund Galaxy Digital, is one of the world’s biggest supporters of cryptocurrency. Speaking to CNN on Thursday about the future forecast, Novogratz urged investors to ignore the often massive daily swings in the price of Bitcoin and look at the big picture.
“Bubbles and mania are happening about things that fundamentally change the way we think,” Novogratz told CNN’s Julia Chatterley at the event. “Funding will be disrupted by decentralized systems, I’m sure.”
The price of Bitcoin has risen by around 45% this year and nearly 300% in the past 12 months, according to CoinDesk.
Novogratz noted that much of the attention around the bitcoin craze is on the underlying technology, but he believes the crypto space represents a new investment identity that goes beyond the simple search for a return.
Bitcoin started the fourth quarter of the year on the rise, rising nearly 10% on Friday as speculators grow convinced that the crypto asset will continue to post gains despite increasing regulatory pressure.
The largest digital asset by market cap jumped to $ 47,742, helping push other cryptocurrencies like Ether and Litecoin higher. Thursday’s comments were interpreted by Federal Reserve Chairman Jerome Powell as a sign that the United States may take a lighter regulatory stance.
Novogratz predicts that Bitcoin will be worth more than half a million dollars in ten years.
But while Bitcoin is the largest and most popular cryptocurrency, there are thousands more with much smaller market caps and may still exist.
“I bet 75% of cryptocurrencies won’t work in the next decade,” Novogratz adds.
Although the cryptocurrency space is teeming with hungry investors and offers plenty of opportunities to invest money, a dark cloud still hangs over it, namely regulation. It is not yet clear which regulator is supposed to oversee the crypto market.
Novogratz said some regulation would help, but stressed the importance of having some freedom to innovate.
“We are all in favor of regulating the sector,” said Tavonia Evans, founder of cryptocurrency Guapcoin, which is why she reached out to regulators to work together on common ground and “not stifle this new sector.” .
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