There is no doubting that Bitcoin, blockchain technology, and the number of other facets associated with the industry have shown mountains of promise over the past few years since breaking into the mainstream. But, in over 10 years, there has not been the kind of uptake that many other nascent technologies have experienced.

This has led to Mike Novogratz, CEO of crypto merchant bank Galaxy Digital and a well-known Bitcoin bull, firstly labelling 2020 as a vital year for the king of cryptocurrencies to turn its fortunes around and to reach critical mass or key adoptions.

Novogratz seems to be getting a little impatient with things in an unprecedented year for Bitcoin, as well as other financial markets. The early months of 2020 were extremely positive for Bitcoin, and fed into the fact that it could be the coin’s year, but the Covid-19 outbreak has put paid to that.

However, Bitcoin has been created from a financial crisis — going back to 2008 — and thus, this upcoming crisis should be one that is perfect for Bitcoin to flourish. Thus, Novogratz demanding Bitcoin spring into life might not be such a bold call. However, the CEO has set an ultimatum that may see him leave the space if things don’t get better for Bitcoin.

Novogratz has now said that by 2020 he will not see Bitocin reach a new all time high, he will quit.

“This is the year of Bitcoin and if it doesn’t go up now by the end of the year, I might just hang my spurs,” he said.

Will Bitcoin become a hedge in a crisis?

Bitcoin indeed came about because of the 2008 financial crisis that emanated from the housing collapse and led to the fall of many major banks. This proved that the centralised financial system was very much flawed and needed an alternative.

Bitcoin was born to be that alternative, and to help people through the next crisis. Now, some 12 years on, we have a crisis that may well end up being a bigger economic burden than 2008. It begs the question if Bitcoin has, in its 10 or so years of existence, been built up enough to offer a viable alternative.

The Bitcoin market has struggled alongside the stock market when the prices fell, but it has also shown some slight negative correlation as the stocks fell further. But, to say that it can be a financial system that will fare better than the current one would be a bit of a stretch as at the moment it may only offer an alternative store of value.