Last Updated on: 22nd November 2023, 12:18 pm
Cryptocurrencies have lost more than 70% of their value from the days when the likes of bitcoin hit $20,000. Several cryptocurrencies have lost even greater value and it has raised suspicions that the age of cryptocurrencies may finally be over. Maybe it is now time to find out what is pointsbet promo code. Yet, Bitcoin bull Mike Novogratz claims that the market is now placing itself for a major growth.
The last 12 months have been extremely difficult for cryptocurrencies, as they have had to face several legal hurdles in different parts of the world. Many pundits warned about the likes of bitcoin being a bubble and the recent fall has only added to their assertion.
Novogratz is of the opinion that the entry of institutions will change the situation dramatically going forward. He has pointed out to the change in stance adopted by big companies with regard to the cryptocurrency world. The likes of Microsoft and Starbucks will eventually allow bitcoins, according to Novogratz, and this will help fuel a greater adoption amongst the general public. Once such big institutions enter into the fray, it may start a spiral where other institutions join rather quickly in order to avoid missing out on a potential opportunity. Institutional FOMO is a powerful phenomenon and Novogratz claims that in the world is on the verge of witnessing a similar trend with regard to bitcoins.
Speaking to CNN, he said: “You’re seeing now institutions moving in. Starbucks and Microsoft will allow you to use bitcoin. As you see more adoption of just people being comfortable with it, it feels like it’s going to go up.
“There’s an institutional FOMO going on all of a sudden.
“There’s a lot of similarities to crypto of 2017. There’s a limited supply of something that’s going to be a major, major theme over the next 5-10 years.”
A shift in the stance already seems to be taking place with Google lifting the ban on advertisement of certain cryptocurrencies. Earlier, the ban covered every form of cryptocurrency and this had a significant impact on the money that flowed into the segment.
Bitcoin has been able to hold the $6,000 figure in the last few months.
A number of sceptics have been arguing that it is difficult to place a value on cryptocurrency because it is not backed by any organisation or government. Since it does not have any intrinsic value, cryptocurrencies have been seen as one of the biggest scams in recent times. Yet, it has started becoming a store of value in recent times and new generation cryptocurrencies have also started providing a way of conducting real transactions at a fraction of the cost compared to the regular means.
Novogratz is betting heavily on the limited availability of cryptocurrencies as a major factor that could boost up interest in value over the next five or 10 years. Unlike a regular form of currency that is printed as and when necessary, bitcoins and other major cryptocurrencies are available only in finite numbers. After having lost more than 80% of the value in the last year, the path for cryptocurrencies is only up.