Cold and stormy winters are always bad, and the winter of the crypto world is no exception. A high turnout does not seem likely to most at the moment, yet there are some people like billionaire Mike Novogratz who feel otherwise. Novogratz expects the value of bitcoin to rise up to $500,000 within the next five years.
“It’s not like diving with two feet right now because institutions are a little bit more cautious. But once we get balance, once we get equilibrium and start a new narrative they’ll come back. When I look at the global landscape, I just don’t see how fiscal prudence gets put back into a box.”
Novogratz said that his reasoning is backed by the fact that bitcoin has unique features and that it is being adopted faster than any other coin. In that regard, he mentioned that crypto is “tailor-made to being an anti-inflation store of value” along with being “easily transferable and so it’s better than gold in so many ways.”
A mishap that Novogratz did not foresee was the magnitude at which the current bear market would affect the system. Especially since he was a huge fan and major promoter of Terraform Labs. After its downfall, he learned his lesson that retail and industry investors did not have much knowledge about risk management.
“What I don’t think people expected was the magnitude of losses that would show up in professional institutions’ balance sheets and that caused the daisy chain of events . . . It turned into a full-fledged credit crisis with complete liquidation and huge damage on confidence in the space,” he said.
Taking into account all the ups and downs of the crypto world, $500K in five years is a bit of a stretch. Nevertheless, each victory always overshadows the losses and brings crypto closer to its goal. Novogratz and many others are confident in the power of crypto and might even be the push factor for many others to start trusting this new and ingenious technology.