Bitcoin Will Skyrocket When Sh*t Hits the Fan, Says Wall Street’s Biggest Crypto Bull
Former Goldman Sachs executive and current Galaxy Digital CEO Mike Novogratz says Bitcoin will skyrocket during the next financial crisis.
At MENA Summit 2019 in Abu Dhab, Novogratz explained why he thinks every investor should have 1% of their portfolio in Bitcoin.
“As Bitcoin is becoming digital gold, and really the only crypto that has value just because it does, it is the hedge against these Minsky moments – if the shit hits the fan and yields curve.
People say, ‘If the stock market goes down, that’s not going to make Bitcoin go up.’ But if we start having a real financial crisis, a breakdown in trust and government securities, then it’s going to skyrocket. Because it really is hard money. You could also buy gold, but it’s going to replace gold.
And what we’re seeing with big institutions now, from Fidelity to the New York Stock Exchange, is the architecture for rich guys and rich institutions to safely store money in Bitcoin is being build. The two big custody solutions are going to be turned on in the next two months. They got delayed a little bit because the government shut down. And I would tell you by June of this year you’ll see institutions, Canadian pension funds and others, start accumulating small amounts of Bitcoin. To me, it seems like a no-brainer to have some portion of your portfolio on Bitcoin.”
Morgan Creek Digital founder Anthony Pompliano is on the same page, and says institutions aren’t just coming to crypto – they’re already here.
Last month, the crypto asset management firm announced it has successfully started a new fund that’s raised $40 million from two public pensions, a university endowment, an insurance company, a hospital system and a private foundation. Morgan Creek Digital’s fund will invest in companies focused on building blockchain solutions and hold a small percentage in cryptocurrencies like Bitcoin.
Novogratz’s Galaxy Digital is another key player pushing for institutions to jump into Bitcoin and cryptocurrency. The company has invested in a long list of blockchain and cryptocurrency startups including Bakkt, AlphaPoint, BitGo, BitFury, Bitstamp, Block.one, BlockFi, Caspian, Ripple and Xapo.