Michael Novogratz sees a six-digit Bitcoin price by the end of the year.
Ardent crypto bull Michael Novogratz is the founder of cryptocurrency investment firm Galaxy Digital. Bitcoin made a lunar landing with the Bitcoin USD price reaching a jaw-dropping all-time high of 55,032 USD.
Meanwhile, the debate still rages on what Bitcoin is in terms of an asset, bearing in mind it is not a commodity since it has no application for production. Moreover, it is too volatile to be used as currency. But Bitcoin bulls argue that it is the best store of value and protection against central bank fiat debasement.
“Bitcoin made a lunar landing with the Bitcoin USD price reaching a jaw-dropping all-time high of 55,032 USD”
WEALTH TRAINING COMPANY
Bitcoin is the young man’s version of gold in the 21st century. In other words, it is the new digital gold, argue Bitcoin Bulls. But surely, a store of value is an idea that crosses generations. The great work of arts, precious metals, precious stones, and classic cars are also a store of wealth and their value is understood by various generations.
The crypto king believes that all stores of wealth are merely a belief system, which is why Michael Novogratz sees a six-digit Bitcoin price by the end of the year
But we disagree that a store of wealth is a belief system and we will explain our reasoning below. Imagine two people on the opposite end of the spectrum of the human food chain.
The first struggles to survive but can save a merger sum of money at the end of the month. But due to the central bank’s massive currency creation prices keep rising faster than the person’s wages. Moreover, the bank pays no interest on deposit accounts So this person decides to store his merger surplus income in one-kilogram sacks of non-perishable stapple foods, rice, flour, sugar. The person believes that his storage of non-perishables will double in a year, and he can always barter what he doesn’t consume. So, this is an example of a store of wealth.
“The crypto king believes that all stores of wealth are merely a belief system, which is why Michael Novogratz sees a six-digit Bitcoin price by the end of the year”
WEALTH TRAINING COMPANY
Moving to the other end of the food chain is the multi billionaire who decides to liquidate his USD 450 million portfolio of sovereign bond investments. The billionaire realizes that central banks are creating currencies without any correlation to rising productivity. Moreover, because governments are so deep in debt the central banks will deliberately suppress the yields, thereby making the debt serviceable. But the promise to receive a bundle of debased currency at the bond’s maturity date is not an attractive investment. So, the multi billionaire decides to buy Leonardo da Vinci’s Salvator Mundi for US$450.3 million. We are not making this up, Salvator Mundi (Savior of the World) was sold in November 2017 for US$450.3 million.
In short, scarcity, which defines a store of wealth, is not an ideology. Those who believe that Bitcoin is scarce because there are only 21 Bitcoins are being duped. Think about it. 21 one million units can be divided into fractions and those fractions can be further fractionalized and so on.
“To be clear, I am not an investor, I am an engineer. I don’t even own any publicly traded stock besides Tesla” – Elon Musk
But egged on by Elon Musk Tesla’s recent decision to buy $1.5 billion worth of Bitcoin. Michael Novogratz sees a six-digit Bitcoin price by the year-end
“You’re going to see every company in America do the same thing,” Novogratz said Monday in a Bloomberg Television interview. Between corporations adding Bitcoin to treasury funds and the city of Miami also considering adding the cryptocurrency to its balance sheet, “It doesn’t have to be a lot. It’s the messaging that matters, you’re seeing the herd here, and it’s coming” said Michael Novogratz.
Indeed, the Bitcoin message is a clear middle finger to the central banks’ fiat debt currency system. So, Musk’s $1.5 billion move into Bitcoin could also have been a protest vote. It is similar to the Italians voting porn star, Cicciolina into parliament as a sign of discontent with the political class.
“To be clear, I am not an investor, I am an engineer. I don’t even own any publicly traded stock besides Tesla. However, when fiat currency has a negative real interest, only a fool wouldn’t look elsewhere. Bitcoin is almost as bs as fiat money. The keyword is “almost”, tweeted Elon Musk.
So, the world’s richest guy has now publicly admitted that the central banks’ fiat currencies are BS. This is a nightmare scenario for bond investors.
“While Michael Novogratz sees six-digit Bitcoin classic investor Warren Buffett blasted Bitcoin as a worthless delusion and ‘rat poison squared’ ” – Wealth Training Company
Michael Novogratz sees a six-digit Bitcoin price by the end of the year, and frankly, if he is right then Bitcoin’s rally underscores that a systemic crisis could be brewing
But is Bitcoin a life raft from the central banks’ unlimited M2 money supply which is already causing hyperinflation if everything is measured in terms of Bitcoin? That half a million-dollar house is worth 10 Bitcoins today.
Michael Novogratz sees six-digit Bitcoin where the cryptocurrency reaches 100,000 USD by the end of 2021
Put another way you’ll need just 5 Bitcoins for the same house, if Michael Novogratz’s forecast is accurate.
While Michael Novogratz sees six-digit Bitcoin classic investor Warren Buffett blasted Bitcoin as a worthless delusion and ‘rat poison squared’
Nevertheless, Michael Novogratz speculated that other companies would follow Tesla’s foot’s steps and move excess reserves into Bitcoin, perhaps as a hedge against inflation or a falling dollar.
It is corporations moving part of their reserves in Bitcoin is how Michael Novogratz sees six-digit Bitcoin playing out in 2021. But it is also worth noting that Tesla’s stock price has fallen since Musk’s Tesla $1.5 billion moves into Bitcoin
Smart money buying Bitcoin isn’t an endorsement of the cryptocurrency’s success, bearing in mind that Isaac Newton, another genius lost his fortune investing in the South Sea Bubble in 1721.
What if Bitcoin turns out to be a digital tulip rather than digital gold, which the Bitcoin bulls claim. See Michael Novogratz sees six-digit Bitcoin interview.
