The long-term prediction of the price of Bitcoin, is a frequent subject of discussion. Various well-known figures are outdoing themselves in their predictions. Among them is the famous investor Mike Novogratz, who believes that BTC will reach $500,000 in the coming 5 years. He finds the following justification for this.
Novogratz was recently a guest at the Bloomberg Crypto Summit. On this occasion, he shared with his audience the outlook for the price of Bitcoin. In his opinion, the leading cryptocurrency is even destined for high price levels. Noting the technology behind BTC, he announced that the $500,000 level is achievable in the coming 5 years. Reasons for such optimistic predictions include global adoption and outstanding properties that particularly distinguish Bitcoin from gold. One of these properties is the ease of transfer and the fact that Bitcoin is a real protection against inflation. As he states:
“BTC was tailored to be an anti-inflationary store of value.”
A broken system
Mike Novogratz is a widely known figure. This experienced investor currently serves as a director of Galaxy Investment Partners, a company focusing on investments in the cryptocurrency sector.
He looks at the market with an experienced eye and assesses that the global financial system is highly broken. It is driven by the constant generation of debt. In doing so, it has been tailored to fuel rampant inflation. Under such conditions Bitcoin is the ideal tool to combat the above flaws, in his view.
Already last month, Novogratz noted that the U.S. economy is headed for a sharp recession. Since such would occur in the U.S., it can be expected that a similar or even worse scenario could await the rest of the world. Meanwhile, the US CPI inflation reading for June was 9.1%, the highest in the last 40 years.
Has the bottom been reached?
Novogratz also spoke harshly about regulators. He pointed out directly that they are not doing enough to protect retail investors. In his opinion, small investors face an uneven game against institutions, which in turn use high leverage to generate profit. It is interesting to note, in turn, that Novogratz was tempted to say that “the worst in the cryptocurrency market is finally over.” So, in his opinion, has the bottom of BTC’s valuation already been reached? Perhaps we will soon find out. And in another 5 years we will find out whether the vision of $500,000 for Bitcoin, will indeed be fulfilled.