Billionaire Mike Novogratz: Cryptocurrency Market to Reach $20 Trillion

Former Goldman Sachs partner, Mike Novogratz distinctively poised himself as an early cryptocurrency bull with an institutional investment background.

At the Bloomberg Invest Summit in early June 2018, Novogratz told reporters that the global cryptocurrency market is headed towards a $20 trillion valuation.

Skeptics of cryptocurrency have compared the emerging markets to the $6 to $1 trillion collapse of the U.S. dot-com bubble, using January 2018 price action as an indication of fragile conditions and looming downfall.

In contrast to the Internet bubble of 1999, the sudden prevalence of cryptocurrency and its underlying blockchain technology is spanning across nations worldwide.

The global presence of cryptocurrency drastically overshadows the U.S. exclusive dot-com fervor that took place decades ago.

In December 2017, the global cryptocurrency market cap peaked at nearly $900 billion and currently sits at about $345 billion.

Fueled by institutional investors, the global cryptocurrency market will reach its greatest height when major investment firms, fund managers, and commercial banks join the bandwagon, perhaps in "Fear of missing out".

Novogratz made clear that the previous price boosts in cryptocurrency were caused primarily by a majority of retail investors and traders rather than institutional whales.

Despite early actors like Susquehanna International Group, few major investment firms have taken action and entered the growing cryptocurrency markets.

As the cryptocurrency markets continue to mature, stability and established regulation will likely attract investors waiting for safer market conditions.