Mike Novogratz, co-founder, and chief executive of BTC Bull, does not recommend investors put most of their money into bitcoin, but advises investors to own more gold than bitcoins.
The great digital currency is gaining momentum as more and more companies worldwide introduce more tools to facilitate the mass adoption of crypto. Although Bitcoin far outperforms precious metals, the cryptocurrency’s high volatility makes it difficult to buy more gold than Bitcoin. Novogratz said on CNBC’s Fast Money Show that he feels that Bitcoin “performs far better than gold” and would tell people to have much less Bitcoin than gold just because of the volatility.
Bitcoin Still is in the Adoption Cycle Says, Novogratz Although he puts this down to the fact that it has far outpaced the precious metal, it is still in the early stages of an adoption cycle, meaning that cryptocurrencies are still hard to come by.
“Bitcoin is still hard to buy. If it was easier to buy, it would be a lot higher. And there are more and more people making it easier to buy: funds being set up, custodies being done, at one point we’ll get an ETF.”
Surprisingly Gold’s Hitting 9-Years High Amid the Current Pandemic
Novogratz’s call for gold to be preferred to bitcoin comes as gold has hit a nine-year high. On Wednesday, spot gold traded at $1,810, more than 1.5 percent higher than its low of $1790 last week. The soaring price of gold appears to disprove economic fears about a new type of coronavirus. Gold broke through the $1,800 mark on Tuesday, reaching its highest price since September 2011.
According to a recent report, one of the world’s largest crypto- and blockchain investors are considering whether to focus on gold or bitcoin, the world’s most popular digital currency.
Last year, Novogratz predicted that institutional interest rates would push the bitcoin price back above $20,000 by the end of 2019. While investing in emerging markets, he is optimistic about the BTC price, predicting that Bitcoin will break through the $10,500 mark by mid-2019 and break through the $20 million mark before the end of 2020, according to Bloomberg.
The cryptocurrency missed expectations last year and was eventually trading at $7,000 by the end of the year and below $6,500 in the first half of 2019.