Mike Novogratz said that Bitcoin‘s recent price drop is nothing to be concerned about
Crypto Pirates
English - September 08, 2021 23:11 - 4 minutes - 7.61 MBTechnology Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
El Salvador is now gaining an understanding of why the rest of the world will not immediately adopt Bitcoin as a medium of exchange for daily transactions.
In the last eight weeks, the cryptocurrency market has performed admirably. Until El Salvador's government decided to deactivate the Chivo bitcoin wallet software in order to address technical difficulties, and then bang!
Within minutes, bitcoin values fell by up to 17% to $43,050, the lowest level in over a month. Other cryptocurrency-related assets and stocks have also fallen precipitously.
Mike Novogratz, a billionaire and a long-time cryptocurrency bull, believes Bitcoin investors became "a bit overly exuberant," and with reason. No Bitcoin investor wants to miss out on the Internet's next big cryptocurrency fad.
The crypto waggon is being pulled by large institutions
To encourage confidence, presumably based on the recent surge in Bitcoin values, Mike noted that huge institutions have now joined the crypto bandwagon.
Visa Inc. recently purchased a $150,000 digital avatar, a type of NFT (or non-fungible token).
Amazon Inc. advertised a position for a "digital currency and blockchain product lead" earlier this week. Additionally, Walmart Inc. is on the market for a cryptocurrency expert.
Individual investors have also demonstrated an interest in purchasing cryptocurrency and other digital assets, which bodes well for the future growth of Bitcoin values.
After all, the more purchasers, the more expensive the goods.
Thus, Mike Novogratz believes that the recent Bitcoin price decline is unimportant. Consider it as "a small amount of air being sucked from the balloon," he explains.
Will El Salvador's Chivo's problematic debut have an impact on Bitcoin adoption?
Mike asserts that technological difficulties encountered during the introduction of the Chivo Bitcoin wallet software are unavoidable. And that the government of the country will eventually smooth out systemic difficulties.
He is convinced that by the time we return to this topic in three to six months, El Salvador's cryptosystem will have evolved in a positive way.
He stated that implementing policies on a large scale, as El Salvador did, is challenging. As such, it is only fair that the world gives Latin America the benefit of the doubt that it will get it right.
El Salvador's government partnered with BitGo, a cryptocurrency start-up founded by Mike Novogratz, to develop the infrastructure and security for the Chivo Bitcoin wallet software.
Galaxy Digital, Mike's firm, acquired BitGo for around $1.2 billion in May.
Nobody understands the crypto market entirely at the moment. However, Bitcoin's price is very certain to skyrocket in the long run. Due to the fact that huge institutions have come to trust Bitcoin as a medium of exchange.