Mike Novogratz: Bitcoin Is a Safe Bet
At press time, bitcoin is trading for well above $11,800. The currency has been on a roll these past few weeks and has surged by more than $2,000 from where it was in late July. However, the asset is still failing to reach $12K despite many separate attempts, and the resistance level at $12K is still proving too much for the world’s number one cryptocurrency to handle.
No doubt bitcoin is a fantastic asset that can do many great things for the world. The problem is it’s still vulnerable. Much like stocks and even gold, the outcomes and circumstances of the global economy have a massive say in how high or how low the currency moves. Right now, bitcoin has hit something of a snag in many ways. While it has remained up, it’s not moving much further right now.
For this reason, Novogratz is warning people not to simply take all the money they own and put everything into bitcoin. Rather, a slow and steady approach should win the digital race. He’s advising that everyone should have anywhere between one to two percent of their portfolios in bitcoin and other cryptocurrencies. Anything above that should only be held by professional traders that really know what they’re doing.
For everyone else, a minor start should be enough to get them involved in crypto trading.
As a veteran Wall Street fund manager, Novogratz knows a thing or two about keeping money safe. In a recent television interview, the founder of Galaxy Digital Holdings Ltd. enforced further confidence in bitcoin by saying that while gold is still setting tons of records, bitcoin is arguably the better investment choice. He believes the day will come when gold hits all kinds of top figures, but for now, bitcoin is a safer bet in many ways.
Why Not Gold?
One of the reasons for this is because it’s “harder to buy.” He says that the currency’s supply is limited, and thus it’s important for people to simply get their fingers on bitcoin now before it runs out. He states:
It’s only got a $20 billion market cap, while gold is over $10 trillion. So, it’s got a long way to go to catch gold in terms of just adoption.
He further explained that he has about one quarter of his overall wealth tied up in BTC and crypto. Gold, as it stands, enjoys purchase options through virtually every standard investment firm, but means of purchasing BTC and other digital assets are relatively limited, and are often confined to exchanges or private transactions with individual bitcoin holders.