Galaxy Digital CEO Mike Novogratz believes bitcoin (BTC) is on track to match or surpass the market capitalization of gold, amid a rapid wave of adoption of digital assets by individuals and institutions.
In an interview with CNBC’s Squawk Box, Novogratz said that the adoption of cryptocurrencies is happening much faster than I expected, adding that it shocks me to see how quickly people are getting into the system.
Novogratz, who has been interested in bitcoin since 2013, when the digital currency was around $100, said his previous price target of $60,000 for BTC was too conservative. The original goal was based on bitcoin reaching about 10% of the market capitalization of gold.
At the beginning of the year, I thought my goal was $60,000 because that would be 10 percent gold, he said. But I said to myself and our investors that if it gets to 10%, we will all say it will be 20%, then 50%, then 100%.
The emergence of bitcoin as digital gold has reinforced Novogratz’s belief that the crypto currency will eventually match or exceed the market value of bullion:
I think bitcoin is on the inevitable path to having the same market capitalization and then a higher market capitalization than gold.
According to current estimates, the total capitalization of the gold market is about $10.7 trillion. In contrast, bitcoin has a total market value of $1.1 trillion.
Bitcoin appears to be overtaking gold in the battle for safe havens, with some leading analysts claiming that BTC is taking market share from the yellow metal. In December 2020, strategists at JPMorgan Chase said the rise of bitcoin would be a short-term headwind for gold bars.
One bitcoin is currently worth 34.49 ounces of gold. This time last year, the ratio was about 4.19 ounces.
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