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“Have A Lot Less Bitcoin Than Gold” Says Major Bitcoin Bull Novogratz

Galaxy Digital’s Michael Novogratz has warned investors against sinking too much money into Bitcoin, claiming it is still too volatile an asset.

Major Bitcoin advocate Michael Novogratz, putting his mouth where his money isn’t, has suggested that investors should not invest most of their funds into Bitcoin and cryptocurrency assets.

As a known Bitcoin bull and head of major cryptocurrency venture capital firm Galaxy Digital, Novogratz strongly believes that the cryptocurrency will outperform other asset classes, such as precious metals. However, during CNBC’s Fast Money, he offered that gold might be a safer bet than Bitcoin as a result of more stability.

Novogratz: Bitcoin Still Suffers From Too Much Volatility

Novogratz thinks that Bitcoin price is too volatile as it is still too “early in the adoption cycle“, making it difficult to obtain and making it a challenging asset at present to be a safe haven for investment. He stated:

“My sense is that Bitcoin way outperforms gold, but I would tell people to have a lot less Bitcoin than they have gold, just because of the volatility…Bitcoin is still hard to buy. If it was easier to buy, it would be a lot higher. And there are more and more people making it easier to buy: funds being set up, custodies being done, at one point we’ll get an ETF.”

Gold Price Is Increasing, Despite Global Pandemic

Novogratz’s suggestion to consider investing in gold instead of Bitcoin is not ill-timed. Gold is sitting at prices it hasn’t seen almost the past decade. The value of the precious metal recently broke the highest price it has held since 2011. The price of gold and flood of investors is likely linked to fears surrounding cash-flow and economic uncertainty as a result of the global pandemic as the COVID19 Coronavirus sweeps across the world.

Posted: Jul 08, 2020 Author: Becky Leighton Categories: Bitcoin News