A lot of conjecture has been raging in the market
A lot of conjecture has been raging in the market regarding whether or not Bitcoin has the potential to become digital gold. Some prominent crypto experts have openly stated their arguments for or against this debate.
Back in December, Alex Gurevich, an ex JP Morgan Executive said Bitcoin is Getting “Closer to Becoming Digital Gold” Every Day. Recently in an interview with Bloomberg, Mike Novogratz, a former Goldman Sachs partner and founder of Galaxy Digital, stated that there was a possibility of Bitcoin rising up to $8,000 in 2019.
Additionally, Novogratz also believes that Bitcoin will become digital gold. It will be adopted as a sovereign currency instead of U.S. or Chinese money. Which got us thinking, if Bitcoin could actually become digital gold.
There has been a lot of talk about the volatility of Bitcoin and it’s viability as a sovereign currency in the future. However, if the current market recovers, then there might be a hope for another bullish phase which could propel greater adoption for Bitcoin in the market.
On the question of the market recovering, Novogratz is of the opinion that the retail frenzy has been successfully flushed out from the market by the end of January 2018. The bubble has finally burst and now there is a chance that the market will retain actual substance. Novogratz is hopeful that in the next 6 to 12 months, the market will see investments flowing in from institutional investors.
Now whether Bitcoin will be as solid an investment as digital gold still remains to be seen, but the investors and experts are in general hopeful about a market recovery.
Novogratz believes that Bitcoin will be digital gold because its is sovereign in nature. He argued that:
“There’s 118 elements on the periodic table, and only one gold […] Bitcoin is going to be digital gold, a place where you have sovereign money, it’s not U.S. money, it’s not Chinese money, it’s sovereign. Sovereignty costs a lot, it should.”
While it is not clear why Novogratz thinks only Bitcoin has the potential to emerge as digital gold, it is quite evident that he is willing to bet on the success of the cryptocurrency.