US Senate gives cryptocurrencies green light

US Government approves SEC's anti-fraud but pro-cryptocurrency stance during yesterday's hearing
07 February 2018   1381

Yesterday's hearing has been a hot topic among the crypto community for the past several days. Everyone feared new laws and regulations being passed to further choke down the market. But fear not, SEC Chairman Jay Clayton spoke in favor of digital currency market and is firmly on the side of progress, it seems.

All the while talking about the crypto world, he separated the topic into three categories:

  • cryptocurrencies themselves, comparing them to fiat currencies, but with their own defining characteristics;

  • blockchain technology as an underlying principle of distributed ledger, which doesn't have to necessarily be associated with digital currencies alone and can be a driving force of progressive development of a more open economy;

  • ICOs, which have a lot in common with a stock offering or commodity trading, so most of the regulatory focus should be put on those to prevent fraud and to protect mainstream investors.

The other prominent figure of the hearing was CFTC Chairman J. Christopher Giancarlo. The opening of his speech holds a lot of promise for the cryptocurrency market, because he openly admitted to recognize not only the growing interest of the younger generation towards Bitcoin and other digital currencies, but also sees its value as a value storage medium. Even the ever-popular term HODL came up in this discussion to further cement the point about the general investors' view of their digital currencies assets.

Both Clayton and Giancarlo made a specific accent on not asking for any more restrictive laws to be passed, but to put more effort into security and fraud prevention, so the general populace wouldn't have to fear about scam while entering the new market.

The Senate agreed on a lot of points with both of them, so for now the markets are out of hot waters, it seems. They even responded with a sudden rise of $83 billion in total capitalizations and ending the yesterday's dip for practically every coin across the board.

Bitcoin May Pass Gold Market Cap, - Novogratz

Mike Novogratz continues to be Bitcoin and cryptocurrency optimist 
25 March 2019   105

The founder of Galaxy Digital, Mike Novogratz, expressed the opinion that over the next 20 years, Bitcoin’s capitalization would “easily” surpass the gold market, currently estimated at $ 7.5 trillion. It is reported by The Daily HODL.

In a conversation with the founder of Morgan Creek Digital, Anthony Pompiano, Novogratz stressed that the inflow of institutional money to the cryptocurrency market is only a matter of time, and major players like Goldman Sachs and the Intercontinental Exchange (ICE) are already mastering a new industry.

I know Goldman for instance is gearing up around securities tokens. They’re not doing anything yet, but they’re getting really ready and looking at all the questions on – where would you store them? Do you have to build your own custody, or can you use someone else’s custody? How to get them to work.

Mike Novogratz

Founder, Galaxy Digital

According to him, the growth potential of Bitcoin is strong and therefore it is advisable for investors to include the first cryptocurrency in their portfolios:

I think the macro case for [Bitcoin] is pretty strong. And so, if you can put a couple percent of your portfolio in, there’s a decent chance it catches wind. Fidelity is just getting set up. Bakkt continues to get delayed a little bit, but it’s not going to be delayed forever. They’re going to be in the game. And there’s lots of other players coming.

Mike Novogratz

Founder, Galaxy Digital

According to him, the volume of the gold market is $ 7.5-8 trillion and in order to outperform this market, the first cryptocurrency needs to grow in price at least 100 times.

Gold’s got an $8 trillion market cap, or a $7.5 trillion market cap. And so, we’re 100x off on that. We’re not going to get there in Bitcoin in the next year or two. But over a 20-year period, could that happen? Easily. Easily. And that’s giving zero optionality to all the other stuff. And so I think it seems like a pretty smart portfolio bet.

Mike Novogratz

Founder, Galaxy Digital

The founder of Galaxy Digital also touched on the topic of bitcoin futures.

The reality is, the CME kicked their butts. And these guys have limited resources on what they’re going to spend their focus, and they decided to spend it elsewhere. Finding leverage in Bitcoin is going to get easier as the architecture in the space gets better. You’re already seeing the lending market around Bitcoin went from 10% to like 3%. So once you can borrow you can short. And so now it’s not so hard to short Bitcoin. It used to be almost impossible to short Bitcoin in 2016… It wasn’t great, but it’s not critical. 

Mike Novogratz

Founder, Galaxy Digital

In February Mike expressed the opinion that, thanks to institutional money, Bitcoin will reach $ 8,000.