Famed investor Michael Novogratz, who recently said he has 10% of his money in Bitcoin and Ether, now states that digital currencies could reach a value of $5 trillion in five years — if the industry will be able to reach massive adoption.
“The Nasdaq got to $5.4 trillion in 1999, why couldn’t it be as big? There’s so much human capital and real money being poured into the space and we’re at the takeoff point. Pay your taxes, because nobody in that space pays taxes. It’s a bunch of libertarians. There really is a revolutionary spirit amongst the guys that are building this system.”
In order to obtain this value, companies will have to develop businesses and projects that are able to satisfy regulators, but right now bitcoin’s reputation is not going to the correct street as it is popularly perceived as a currency favored by black markets and hackers.
The cryptocurrency industry took a new reputational collapse a few days ago when a cyber attack spread around the world, disabling computers and demanding users pay $300 in cryptocurrency. Back in May, a similar thing happened with the WannaCry hack.
While bitcoin price is currently trading at $2,547 at press time and it is the biggest cryptocurrency in the industry with more than 140 percent gained during this year, Ether, the digital token that runs on Ethereum blockchain, reached a value of $240 from just $8 earlier this year.
According to Coinmarketcap data, Ether has a market cap of $28,589,831,650, while bitcoin reaches almost double with $41,973,033,307.
Novogratz said he gained profits thanks to bitcoin and Ether holding when prices surged, and he still has 10 percent of his worth invested in digital currencies, including blockchain-based tokens he purchased during fundraising processes known as initial coin offerings or ICOs. He wants to buy more Ether if its price falls between $200 and $150, and more bitcoin if it falls to $2,000.
Bitcoin vs Gold
Bitcoin is known as the digital gold, but if you invested $10.000 in gold back in 2010 you now would have lost money (just a couple of hundred, but who want to invest in a losing asset?).
Conversely, if you decided to invest the same amount in bitcoin now you were swimming in your money like Scrooge McDuck.