Bitcoin (BTC) has gained significant notoriety in the decade since its launch in 2009. Major players in conventional finance such as MicroStrategy have recently begun to invest large sums of money in assets, normalizing their viability as an investment for some. Mike Novogratz, CEO of Galaxy Digital, said that Bitcoin Code app is now an obvious financial move.
„On a risk-adjusted basis, BTC is an easier bet today than it has ever been,“ Novogratz said in an October 27 tweet. „It’s being de-risked daily.
Cointelegraph contacted Novogratz for more details, but received no response by the time of this publication. This article will be updated as a response arrives.
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„Adjusted for its volatility, Bitcoin has shown the best performance in one or two years against all other asset classes,“ said Cointelegraph Markets contributor Marcel Pechman, when asked for his opinion on the Novogratz tweet. „Few investors expect gold to rise by 60%, but it never went below -8%, so the Sharpe index adjusts returns according to volatility“.
Although MicroStrategy bought over $400 million in BTC in the last few months, it is not the only conventional finance giant to join the party. Square, led by Twitter CEO Jack Dorsey, recently bought $50 million at Bitcoin, which was announced on October 8. After revealing his holdings in BTC in May 2020, billionaire Paul Tudor Jones compared the asset to an investment in Apple before its boom.
With its involvement in the conventional world, including traditional commercial products that are being built around it, it’s much easier for Bitcoin to gain financial exposure today than it once was. Although originally designed as an alternative form of money, Bitcoin has gained more prevalence as a value pool and investment option in recent years.
„I don’t think Bitcoin is going to be used as a transactional currency for the next five years,“ Novogratz said in an interview for Bloomberg TV, published on October 23. „Bitcoin is being used as a store of value,“ he added. „People are worried that central banks around the world are devaluing fiat currencies.
Novogratz calls the news about Bitcoin and PayPal „the shot heard around the world on Wall Street.
The US government, for example, printed a huge amount of its national currency in 2020 in the midst of the COVID-19 pandemic; and an action that could ultimately devalue the US dollar.