Bitcoin is currently down for the count and trading for just under $9,600. While this is still miles better than where it was during this same time last year, the price is droopy when compared to the $10,200 bitcoin stood at early in the week. Of course, this isn’t stopping many analysts – including Mike Novogratz – from staying bullish.
Novogratz: The Revolution Will Take a While
Mike Novogratz is the chief executive officer of Galaxy Digital Holdings, a crypto investment company. He says that while the bitcoin and cryptocurrency revolution is going to happen, he makes it clear in an interview that enthusiasts still need to give these assets time to recover from what happened in 2017 and 2018, the years that bitcoin rose then fell exponentially.
What 2017 did, that crazy bull market, is it got people unrealistic expectations on how fast the blockchain revolution, the crypto revolution is actually going to happen. You got to give them some more runway before we give them the thumbs up or thumbs down.
Novogratz believes it could be at least five more years before cryptocurrencies really start to impact people’s lives. In other words, it will be the year 2024 before bitcoin and its altcoin cousins really have serious marks on the finance industry. While the revolution has certainly been kicked off through companies such as Facebook (with its new cryptocurrency Libra) and Apple, things will still occur at a slow and gradual pace.
For the most part, Novogratz believes Libra really got things moving in the crypto industry this year, though he’s confident traditional financial firms will eventually step up to the plate and trigger the next bull market run. He states:
I think [the next bitcoin bull run will happen] when institutions start coming in. They’re slowly and steadily moving in… This is not like a backwater experiment anymore. This is part of the financial infrastructure. It’s time for the regulators to catch up.
Regulation has been the other serious “plot point” of bitcoin’s story this year. It can be argued that Libra sparked this debate as well, though one could also say that regulation would have come regardless. In any case, many members of U.S. Congress didn’t take too kindly to the notion of Facebook collecting people’s private financial data and decided to get more involved.
The Delays Come with Speculation
In addition, the currency has sparked concern from world leaders such as U.S. President Donald Trump and Bank of England governor Mark Carney, who commented that while Libra should be examined with an open mind, it should not be privy to any special treatment.
Per Marcus Swanepoel, chief executive of London exchange Luno, says many people are still speculating over the BTC price, which means a revolution could be farther away than even Novogratz suggests.