Billionaire Michael Novogratz is an early supporter of the Bitcoin movement and has made a name for himself with his optimistic predictions in the crypto-community. At a New York event in early June this year, he said that market capitalization must rise to $ 20 trillion before we can speak of a true cryptocurrency bubble.

Mike Novogratz, founder of Galaxy Digital, described in an interview at the Bloomberg Summit Invest in New York that the world of cryptocurrencies is at the very beginning of its development and should only be spoken by a bubble with a market capitalization of $ 20 trillion:

Cryptocurrencies and blockchain technology is a global revolution. The internet bubble was only one thing in the US. It was rich US people who attended. Cryptocurrencies have global implications. There are children in Bangladesh who buy coins. It is huge in Tokyo, in South Korea, in China, in India and in Russia. We have a global market and a global madness. This will feel like a bubble when we reach $ 20 trillion.

Many companies are preparing to help institutional investors get into the cryptocurrency market.

Financial heavyweights continue to consider the following factors from entering the crypto market:

Security concerns regarding the storage and safekeeping of capital

Inadequate regulatory requirements

Secure purchase through a stock exchange guarantees full liability

The largest stock exchange in the US, Nasdaq led a few months ago from that Bitcoin and Ethereum could soon be traded if regulations introduced and the market “mature” is it.

Coinbase and Coinbase Custody are working with the SEC to develop a service to store cryptocurrencies to the highest security standards. In addition, Coinbase Prime has created an environment that is specifically tailored to the needs of institutional investors.

Furthermore, Ledger, Nomura and Global Advisors have joined forces to develop a stock exchange called Komainu , which is approved only for large investors and institutional investors. This will meet the increasing demand.

Of course, all these developments are not a guarantee of new capital and rising prices, but it is good evidence that soon a large number of institutions with large amounts of capital will have easier access to the crypto market.

Nevertheless, Novogratz states that this increase will not happen immediately, but is a slow process that will take place bit by bit:

It will not go there immediately [to $ 20 trillion]. What will happen is one of those intrepid retirement funds, someone who is a leader will say, you know what? We have a secure repository, Goldman Sachs is involved, Bloomberg has an index against which I can track my performance and they will buy. And suddenly the second man buys. The same FOMO [fear-of-missing-out] that you have seen in the retail sector [cited by institutional investors].

We are optimistic and hope that the current sideways movement of the crypto market can soon be overcome.

The following video shows the complete conversation with Mr. Novogratz.

Marko Vidrih @cryptomarks

Image via Pixabay