Mike Novogratz, CEO of Galaxy Digital, believes that Bitcoin (BTC) is on track to meet or exceed the market value of gold amid a rapid wave of institutional and retail digital adoption.
In an interview with Squawk Box on CNBC, Novogratz said that “cryptocurrency adoption is happening much faster than I expected,” adding: “It shocks me how quickly people logged on.”
Novogratz, who has been in Bitcoin since 2013, when the digital currency was valued at around $ 100, explained that the previous BTC price of $ 60K was very conservative. The original goal was for Bitcoin to reach about 10% of the market value of gold.
He said: “At the beginning of the year I thought my goal was $ 60,000 because it would be 10% gold.” “But I said to myself and our investors that when it reaches 10%, we will all say it’s 20%, and when it reaches 20%, it goes up to 50% and then to 100%.%.”
Bitcoin’s emergence as “digital gold” has strengthened Novogratz’s confidence that the cryptocurrency will eventually reach or exceed the market value of bullion:
“I believe that Bitcoin will inevitably go the same market value and then a higher market value than gold.”
The total market value of gold is currently estimated at around $ 10.7 trillion. By comparison, the total market value of Bitcoin is $ 1.1 trillion.
Bitcoin seems to be ahead of the gold in the battle for refuge, with some well-known analysts claiming that BTC is taking market share from the yellow metal. In December 2020, strategists at JPMorgan Chase said that Bitcoin’s rally would be an obstacle to bullion in the short term.
A bitcoin is currently valued at 34.49 grams of gold. Last year, this ratio was about 4.19 grams.