Home Newstech news Novogratz Says Buy Hard Money Amidst Fiat Money Printing

Novogratz Says Buy Hard Money Amidst Fiat Money Printing

by Alan Daniel
bitcoin and novogratz

Bitcoin and Gold are Hard Money

The Federal Reserve is back at it again working with the United States government on throwing everything at the kitchen sink and traders as well as money managers like Novogratz thinks that an easy trade is buying the technology driven asset bitcoin and gold. He thinks that buying gold and bitcoin makes sense in this current volatile environment.

We have a global economic crisis along with a similar health pandemic. These two factors have caused central banks all around the world to conduct coordinated stimulus activities.

Further, these activities might take place on a larger scale with the United States leading the way and taking measures to devalue the dollar through stimulus efforts. We’ve heard about the stimulus checks, we’ve seen the loans for small businesses, and we’re seeing that more aid is on the way. Further, economic recovery doesn’t seem to be something that the government can do by simply turning on a “light switch” like Governor Cuomo says. We’ll see further issues related to the aftermath of the coronavirus.

This is why traders like Novogratz see more opportunity in sound money assets like gold and bitcoin.

Novogratz on Bitcoin in 2020

Bitcoin and the general cryptocurrency ecosystem has much going for it in this current year. There’s been a larger push for institutionalization in the bitcoin ecosystem overall. Novogratz and company are just a few of the people behind this movement. The ethereum platform is also seeing reception from different companies with assets being settled on Ethereum. There’s been significant action behind the scenes in both of these blockchain communities from a regulatory standpoint and even from a stability standpoint.

That is why Novogratz, the founder of Galaxy Digital, thinks that bitcoin is headed up to at least $20,000 by the end of 2020. That’s a bold estimate of the bitcoin price and it might be justified if we were to hold bitcoin to its sound money principles amidst a torrent of money printing in the present era.

Remember that bitcoin has the halvening event in May. The halvening event is where the reward distribution for bitcoin miners is cut further, it also means that the supply will slow down as scheduled.

The founder of Galaxy Digital thinks that 2020 will be bitcoin’s year as more factors contribute value to the digital asset and ecosystem. He notes “$BTC will continue to be volatile over the next few months but the macro backdrop is WHY it was created.  This will be and needs to be BTC’s year.”

At the same time, we’re living in intriguing days. We’ve had somewhat of a correction in equities over the past month and now it looks like it is retracing and coming back. Some analysts even expect the equities to come back and hit further highs later this year. As I’m writing this the Dow is surging 700 points. If that is the case, then demand for bitcoin might stay the same.

Investors may continue to seek yield in equities that are believed to be backstopped by the Federal Reserve and think about censorship resistant stores of value another day.

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