Investment legend Michael Novogratz, the $ 3.2 billion investor and former manager of Fortress, a billion-dollar investment firm, recently stated that the crypto-coins market could be worth up to $ 5 trillion by 2022.
Preaching crypto optimism
Over the past two years, Novogratz has expressed optimism over crypto-coins, such as Bitcoin and Ethereum that have led the $ 100 billion crypto-currency market. Novogratz has previously revealed that 10% of its net worth, at least hundreds of millions of dollars, is invested in a diversified portfolio of crypto-coins, including Bitcoin, Ethereum and Litecoin.
Bitcoin has become a global phenomenon over a period of years because of its decentralized and transparent nature that has made Bitcoin an efficient value store, digital currency and safe haven assets for the vast majority of users, traders and investors.
Other successful crypto-derivatives, such as the Ethereum, Litecoin and Ethereum Classic, have gained the interest of individual and institutional investors with their distinctive strategies, philosophies, monetary policies, and purposes.
Ethereum, for example, provides an infrastructure for decentralized autonomous organizations (DAOs) and decentralized applications (DApps), creating a network of applications without intermediaries. The Ethereum Classic is more like Bitcoin, in that it has a fixed and deflationary monetary source.
"We're about to take off"
Comparing the crypto derivative market with Nasdaq due to the variety of crypto and the Blockchain network, Novogratz explained that there is no reason for the criptomoeda market not to be worth $ 5 trillion over the next five years.
"Nasdaq has reached $ 5.4 trillion in 1999, why could not it be so big? There is so much human capital and real money being poured into space and we are about to take off," Novogratz said.
During an interview with Bloomberg, Novogratz also emphasized that a rigid regulatory framework in the global crypto-currency exchange market is absolutely necessary for the crypto-currency market to evolve into a large financial market.
Already overseas markets, including Japan, China, South Korea, Australia, the Philippines, Singapore and Hong Kong, along with many other countries, have regulated the crypto currency market and have provided comprehensive, practical and efficient regulatory frameworks to attract to the crypto currency market.
China in particular is heavily involved in its local crypto-currency market and is currently planning to regulate smaller markets such as the initial money supply market (ICO) that has gained increasing investor interest since the beginning of 2017.
"Most cryptos will end up worth zero"
Of course, the cryptomeoid market and most crypto-coins are still in the early stages of development. As Ari Paul, portfolio manager for the $ 7.5 billion donations at the University of Chicago explains, most existing crypto-coins are likely to decrease in value, while several major crypto-coins such as Bitcoin, Ethereum, Litecoin and Ethereum Classic survive.
"Most cryptos, like most companies, will end up worth zero." This is the nature of the competition, buying and holding is a strategy, not security, "said Paul.
More importantly, as the famous venture capitalist Ravikant famously stated earlier
"All that Bitcoin has to do to become the main store of value is ... to survive."
Of course, the cryptomeoid market and most crypto-coins are still in the early stages of development. As Ari Paul, portfolio manager for the $ 7.5 billion donations at the University of Chicago explains, most existing crypto-coins are likely to decrease in value, while several major crypto-coins such as Bitcoin, Ethereum, Litecoin and Ethereum Classic survive.
"Most cryptos, like most companies, will end up worth zero." This is the nature of the competition, buying and holding is a strategy, not security, "said Paul.
More importantly, as the famous venture capitalist Ravikant famously stated earlier