Mike Novogratz, CEO of Galaxy Digital, recently hosted a webcast titled “Got Gold? Add», We covered the first part in the previous article.
While the first part dealt with the economic consequences of COVID-19, this part will focus on the role that Novogratz calls hedging inflation during the economic downturn, especially Bitcoin and gold.
Novogratz, a former hedge fund investor, sees the world through the lens of a macroeconomic investor who could be one of his secret weapons. According to him, “every portfolio must have inflation coverage more than ever”.
“We are entering a really unstable phase. It won’t be two weeks, it will be years. I think gold and bitcoin are preparing for a multi-year bull market, and frankly the feeling that it is absolutely necessary is part of portfolios to be, “said Novogratz in the invitation.
And while gold “deserves the idea of storing value,” it may, for reasons ranging from the fact that the entire supply can be physically transported or stored in two Olympic-size pools, a new sheriff in town – or at least one new helper.
Novogratz has some gold. But it also has more than 10% of its Bitcoin portfolio, and there’s a good reason for that. He explained:
“Having part of your wallet in gold makes sense to me. I think the unique thing about Bitcoin in terms of gold is that you get the hardest asset in history, but it is received very early in its life cycle. “
Bitcoin has only been around for a little over a decade compared to its competitor for value storage. Its history is a grain of dust compared to the 3,000 years of gold history. And that’s the beauty of digital assets. Novogratz explained:
If Bitcoin were already as mature as gold, you wouldn’t have a chance to buy it at these prices – with a market cap of $ 150 trillion rather than $ 10 trillion
While the emergence of Bitcoin is one of its greatest strengths, it could also be its biggest weakness when it comes to regulation. The story may not be kind to the way regulators have treated the cryptocurrency community so far. But governments around the world are starting to accept the idea of a digital currency, including the PBoC and the Federal Reserve, which are all good signs of cryptocurrency adoption.
“We are in this transition, in which we are reducing at the same time as the transition from digital to Fiat Fiat. So both rays are driving the introduction of Bitcoin, ”said Novogratz.
An obstacle to the introduction of Bitcoin is that buying is not as easy as calling the agent and placing an order. But with mobile apps like Robinhood, Square’s Cash App and even Facebook Messenger and native cryptocurrency platforms, the infrastructure is getting stronger.
And although the cryptocurrency flagship can have its risks, it was introduced.
“I want to take a step back and say that it is the most unique and impressive experiment of the past 20 years. In eleven years, as a brand, as a social structure and as a store of value, Bitcoin today belongs to more than 100 million people in all countries of the world,” Novogratz said, adding that even if not all members of the Giant Army own a full BTC, they own part of one.
Galaxy Digital also has a Bitcoin fund designed for easy access, good liquidity and low fees. Well-known brands such as Fidelity and ICE are used for the safekeeping of funds, Bloomberg for the pricing and E&Y for the examination that there should be “investors comfort”. For those who are interested, the minimum investment is $ 25,000.
There was a proverbial fire under Galaxy Digital’s feet that investors switched to Bitcoin sooner rather than later before the package arrived, which was made up of top hedge funds, foundations, and investment advisors. And according to the evidence that Novogratz sees, the herd is already on its way.
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