Countries Are Already Buying Bitcoin ‘In Huge Volumes’, Says Novogratz
21 November 2024 - 4:30PM
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Mike Novogratz, the founder and CEO of Galaxy Digital Holdings—a
leading crypto investment firm listed on the Toronto Stock
Exchange—has signaled a significant shift in the global adoption of
Bitcoin. In a post on Tuesday via X, Novogratz declared that
countries are already purchasing Bitcoin. Nation-State Bitcoin FOMO
Is Real “Countries are already buying BTC in huge volumes—these are
massive pools of capital entering the market. We’re witnessing
global adoption at scale and the next rally could be massive.
Buckle up. Caught up last week with Bloomberg TV, he stated via X.
In the Bloomberg interview, Novogratz elaborated on the
unprecedented interest from sovereign entities. He mentioned a
close associate—the person who introduced him to BTC in 2013—who is
currently in the Middle East. “He’s never seen anything like it,”
Novogratz said. “He’s convincing more people to buy Bitcoin in the
three days he’s been there than any time in his whole career, and
they’re huge pools of capital. And so we’re seeing something
globally.” Related Reading: US Bitcoin Reserve Will Push Price
Above $1 Million, Expert Predicts Novogratz noted that when former
President Donald Trump advocated in Nashville that he intended to
be a “crypto president” and a “Bitcoin president,” it caught the
attention of international leaders. “Other leaders heard that,” he
remarked, suggesting that geopolitical factors could contribute to
an “amazing rally” in the Bitcoin market. When questioned about the
likelihood of the United States establishing a Strategic BTC
Reserve under a Trump presidency, Novogratz remained cautious. “I
still think it’s a low probability,” he stated. He cited the
complexities of US legislative processes, emphasizing that while
the executive branch or the House might show enthusiasm, the Senate
often urges restraint. “That’s the role of the Senate,” he said,
pointing out that Republicans do not hold a 60-seat majority
necessary to push through such initiatives unilaterally.
Nonetheless, Novogratz acknowledged the potential benefits of the
US embracing Bitcoin at a strategic level. “It would be very smart
for the United States to take the Bitcoin they have and maybe add
some to it,” he suggested, adding that it would signal a commitment
to being a “technology-first country, a crypto and digital
asset-first country.” While he doesn’t believe the US dollar
requires backing by Bitcoin, he admitted that if a Strategic
Bitcoin Reserve were established, “Bitcoin heads to $500,000.”
Related Reading: BitMEX Founder Predicts How Bitcoin Goes To $1
Million Under Trump He added: “If it happens in the short term
without a Strategic Bitcoin Reserve, it’s going to mean six, seven,
eight years,” Novogratz cautioned. “Then it’s just a scramble to
get the hot commodity.” He expressed concerns that such a scenario
could be indicative of hyperinflation, which historically leads to
societal instability. “In every country that experiences
hyperinflation, the results are really crappy,” he noted.
Discussing Bitcoin’s potential to rival gold as a store of value,
Novogratz highlighted a generational shift in investment
preferences. “The total market cap of gold is like $16 trillion,”
he explained, which translates to approximately $800,000 per BTC if
it were to reach parity. “When does Bitcoin become gold?” he asked
rhetorically. Novogratz, who is turning 60 next week, admitted he
still owns gold, calling himself “an old guy.” However, he pointed
out that younger generations are less inclined to invest in gold.
“Forty-year-olds own no gold. Thirty-year-olds own none,” he
observed. “As we see this generational shift, Bitcoin should match
gold within five or ten years, and that gets you to $800,000.” At
press time, BTC traded at $93,000. Featured image from YouTube,
chart from TradingView.com
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