An investment legend with tens of millions of dollars in cryptocurrency: The cryptocurrency market value will exceed 5 trillion US dollars in 2020

Michael Novogratz, the $3.2 billion investment legend and former manager of multi-billion dollar investment firm Fortress, recently said that the cryptocurrency market will be worth more than $5 trillion by 2020.

Spreading Crypto Optimism

Over the past two years, Novogratz has expressed his optimism about cryptocurrencies, such as Bitcoin and Ethereum, which are leading the $100 billion cryptocurrency market. Previously, Novogratz said that 10% of his net worth, at least tens of millions of dollars, is invested in various cryptocurrencies, including Bitcoin, Ethereum and Litecoin.

Bitcoin has become a global phenomenon in a few years due to its decentralization and transparency, which makes Bitcoin an efficient store of value, digital currency and safe-haven asset for the vast majority of users, traders and investors.

Other successful cryptocurrencies such as ETH, Litecoin and ETC have attracted the attention of individual and institutional investors with their unique strategies, philosophies, monetary policies and uses.

For example, ETH provides an infrastructure for decentralized autonomous organizations (DAOs) and decentralized applications (DApps), creating an application network without intermediaries. ETC is more similar to Bitcoin in a sense, with a fixed and deflationary monetary policy.

“We are at the take-off point”

Novogratz compared the cryptocurrency market to the Nasdaq due to the diversity of crypto assets and blockchain networks, explaining that there is no reason why the cryptocurrency market cannot reach a market cap of $5 trillion in the next five years.

“The Nasdaq was $5.4 trillion in 1999, why can’t crypto be that big? There’s so much human capital and real money pouring into this space, and we’re at the takeoff point.”

In the Bloomberg interview, Novogratz further stressed that for the cryptocurrency market to develop into an important financial market, strict regulation of the global cryptocurrency exchange market is absolutely necessary.

Overseas markets including Japan, Mainland China, South Korea, Australia, the Philippines and Hong Kong, among other countries, have already regulated the cryptocurrency exchange market, and some regions have provided a comprehensive, practical and efficient regulatory framework to attract the general public to enter the cryptocurrency exchange market.

China, in particular, is actively participating in the local cryptocurrency market and is actually planning to regulate smaller markets, such as the ICO market, which has attracted a lot of attention from investors since entering 2017.

“Most cryptocurrencies will eventually be worth zero”

It’s clear that the cryptocurrency market and most cryptocurrencies are still in their early stages of development. As Ari Paul, a portfolio manager at the University of Chicago’s $7.5 billion endowment, explained, the value of most existing cryptocurrencies will likely disappear, while a few major cryptocurrencies like Bitcoin, ETH, Litecoin, and ETC will survive.

Paul said:

“Most cryptocurrencies, like most companies, will eventually go to zero. That’s the nature of competition. Buy and hold is a strategy, not a security.

More importantly, as renowned venture capitalist Naval Ravikant famously said:

“All Bitcoin has to do to be a premium store of value is survive.”