Former head of macro hedge fund Fortress, billionaire Michael Novogratz believes that bitcoin has the potential to “break” the $65 thousand mark. He even tried to persuade the star of “Game of Thrones” Macy Williams to invest in the most popular cryptocurrency today, writes Business Insider.
The latter decided to consult on Twitter about whether to make investments in digital tokens with experts such as Ilon Musk, the already mentioned Michael Novogratz and major cryptocurrency investor Barry Silbert.
It all started with bitcoin rising 4.8 per cent to $18480 on Wednesday, hitting a new three-year high, although it fell $1k during the Asian trading session.
Bitcoin’s market capitalisation has now reached a new high of $337bn, up from the record of $328bn set in December 2017, according to mobile app Coin Gecko.
Michael Novogratz, who has long been an advocate for investing in Bitcoin, confidently suggested choosing this cryptocurrency, noting that, according to his expectations, the price of Bitcoin will first reach $20 thousand, and then rise to $65 thousand thanks to the “network effect”, in as a result of which many new buyers appeared on the market with little supply. Today, more and more people are enthusiastically considering this addition to their investment portfolio.
Bitcoin began to rise back in October at the same time that the PayPal payment system gave its customers the green light to buy, sell and store this cryptocurrency in online wallets. Since the beginning of October, its price has increased by 70%.
However, it is interesting to note that out of 100% of those polled by Maisie Williams on Twitter (which is almost 900 thousand people), approximately 53% of respondents were against investing in Bitcoin.
Bridgewater Associates hedge fund founder Ray Dalio is also cautious about Bitcoin. He believes that for now there are a number of reasons why Bitcoin cannot be expected to become an everyday currency any time soon.
From the point of view of this crypto-skeptic, the main reasons that do not contribute to the increase in the popularity of this cryptocurrency is the “wild volatility” of Bitcoin, which only reduces the possibility of its use as a means of exchange and savings. Even if this currency gains popularity in the market, any government will put an official “barrier” on it, which will prevent it from creating dangerous competition with national currencies.
Dalio admitted that “Bitcoin is still missing something”, and it cannot serve as a reliable currency because it is “too unstable”.
Although the world’s central banks (and the US Federal Reserve is no exception) have long been eyeing Bitcoin, its decentralized nature has led to criticism as it is seen as a way to finance illegal activities.
Dalio also doubts that central banks, institutional investors, businesses or multinational corporations will even decide to buy large quantities of Bitcoin as a reserve asset. Although he admitted that if he is wrong, any of his 515,600 followers can correct him.