On Bloomberg Invest Summit in new York, Mike Novogratz, a billionaire investor and former trader at Goldman Sachs and Fortress, said that the cryptocurrency market is expected to grow to $20 trillion. On the question of how he relates to criticism of the rapid growth of the cryptocurrency market and to what skeptics believe, the events of January 2018 bitcoin bubble, Novogratz said, if the January race of bitcoin, Ethereum and other cryptocurrencies to be considered a bubble, then it can be correlated with the dot-com bubble of 1996, which led to the bubble of 1999. Then the market grew to $6 trillion. and then blew up to $1 trillion.
Novogratz said that in mid-2018 cryptocurrency market will rebound from its current correction and will surpass previous record highs, reaching a capitalization of $20 trillion. At the January peak cryptocurrency market has reached approximately $900 billion. So $20 trillion. more than twenty-fold increase compared to the previous maximum.
[Cryptocurrency] is a global revolution. The Internet bubble was only an American phenomenon. It was involved wealthy Americans. Cryptocurrencies are global. Children in Bangladesh buy coin. In Tokyo, South Korea, China, India and Russia, it received a gigantic scale. We got the global market and a global mania. When we reach $20 trillion. it will also be like a bubble.
Although Novogratz is considered the greatest optimist among cryptocurrency investors, it offers a future assessment cryptocurrency market on the basis of real sector statistics.
Novogratz stressed that, despite the growing demand from institutional investors, actual investments in digital currency from them almost was not, and the last rally was due to retail investors and individual traders.
Many experts, including the founder Blocktower Ari Paul, said that to attract institutional investors require stable and reliable storage solution means. Given that many cryptocurrency companies, including Coinbase, as well as representatives of the traditional financial sector, such as Susquehanna have begun to create solutions for the storage of funds, it is likely that in the medium term, institutional investors will enter the market.
Of course, cryptocurrencies will rise to a market capitalization of $20 trillion. immediately. For example, will have to wait until someone will offer a really efficient service, such as supported by such giants as Goldman Sachs, and also until you receive the index, which allows you to track the effectiveness of investments, such as Bloomberg. And then some Fund buy [cryptocurrency], and then the second and third… as well as retail investors, triggered the syndrome of loss of profits (FOMO).