Mike Novogratz, Galaxy Digital CEO, believes Bitcoin (BTC) is on track to match or exceed gold’s market cap, amid a rapid wave of retail and institutional adoption of the digital asset.
In an interview with CNBCs Squawk Box, Novogratz said the cryptocurrency is “coming in much faster than predicted,” adding that “it’s shocking to me how quickly people are moving into the system”.
Novogratz, who has had a stake in Bitcoin since 2013, when the digital currency was valued at around $ 100, said its previous BTC price target of $ 60,000 was too conservative. The original goal was for Bitcoin to reach around 10% of the market capitalization of gold.
“At the beginning of the year, I thought my goal was $ 60,000 because that was 10% of the gold,” he said. “But I’ve been telling myself and our investors that if everyone gets to 10%, we’ll all say it’ll be 20%, and if it gets to 20%, it’ll be 50% and then 100%.”
The advent of Bitcoin as “digital gold” has strengthened Novogratz ‘belief that the cryptocurrency will at some point meet or exceed the market value of gold bars:
“I think Bitcoin is on an inevitable path to the same market cap and then a higher market cap than gold.”
Current estimates assume a total market capitalization of gold of around 10.7 trillion US dollars. Bitcoin, on the other hand, has a total market value of $ 1.1 trillion.
Bitcoin seems to outshine gold in the battle for safe havens. Some prominent analysts claim that BTC is stealing market share from the yellow metal. In December 2020, JPMorgan Chase strategists said the rise of Bitcoin would serve as a headwind for gold bars in the short term.
One Bitcoin is currently worth 34.49 ounces of gold. Last year around this time the ratio was 4.19 ounces.