Perennial BTC bull, Mike Novogratz, has said that long-term gold and Bitcoin bull market is just getting started, and both the assets are poised to deliver consistent gains. Mike further says that portfolios must be adjusted to include inflation hedges that prevent investors against abrupt downturns.
— Michael Novogratz (@novogratz) April 30, 2020
The chief executive officer of Galaxy Digital believes that Bitcoin’s credentials as a safe-haven asset are strengthening every day. BTC is in the early stages of its life as a safe-haven, which makes it a once-in-a-lifetime opportunity.
Gold and Bitcoin are worthy inflation hedges
In his podcast titled ‘Got Gold? Add Bitcoin’, Mike discusses in detail how the COVID-19 pandemic has shown Bitcoin’s credentials as a safe value storehouse. In his quest to discover inflation hedges, he recommends gold and Bitcoin to tide over uncertain economic times.
An ex-hedge fund trader, Mike, takes into account the macro-economic picture while issuing such statements. Considering fed is unleashing a tornado of money into the markets, it is reasonable to look for inflation hedges. He adds that the world is entering an uncertain financial period, and the last four weeks have questioned everyone’s financial knowledge. So, is a Bitcoin bull market in play?
Bitcoin bull market will mature much faster than gold
Novogratz adds that gold and Bitcoin bull market is ready to mature as the world economies fold up. He suggests that both these assets are a must-have in every investor’s portfolio. Gold has always proven itself to be a time-tested value storehouse for centuries. However, gold storage and supply chain have their limitations, which means an alternative must be explored. And Bitcoin surely does meet this criterion.
Novogratz further explains why his portfolio is 10% Bitcoin. He believes that Bitcoin is mimicking gold in many ways, and it is still early in its life cycle. So, it is prudent to collect an asset that will multiply many times over in the years to come. Gold has been around for 3,00 years, but BTC has just started its financial journey.
Bitcoin bull market is not as mature as the gold’s, but that’s precisely the point. If Bitcoin reaches an equivalent of gold’s market cap, most investors won’t be able to afford it at those stratospheric price levels.