Connect with us

Hold More Gold Than Bitcoin, Says BTC Bull Mike Novogratz

Hold More Gold Than Bitcoin, Says BTC Bull Mike Novogratz

Published

3 years ago

on

Michael Novogratz, who predicted BTC to hit $20,000 by the end of 2020, advises investors to own more gold than Bitcoin.

Michael Novogratz, one of the biggest Bitcoin (BTC) bulls in the world, does not recommend investors to put the majority of their funds into Bitcoin.

Although Novogratz is confident that Bitcoin “way outperforms” the precious metal, it is still safer to buy more gold than Bitcoin due to the cryptocurrency’s highly volatile nature.

Bitcoin is still “early in the adoption cycle,” Novogratz says

“My sense is that Bitcoin way outperforms gold, but I would tell people to have a lot less Bitcoin than they have gold, just because of the volatility,” Novogratz said during CNBC’s Fast Money on July 8.

According to Novogratz, Bitcoin is still “early in the adoption cycle,” which means that the cryptocurrency is still hard to obtain. However, the major digital currency will be gradually gaining momentum as more companies around the world are introducing more tools to bring the mass adoption to crypto.

Novogratz said:

“Bitcoin is still hard to buy. If it was easier to buy, it would be a lot higher. And there are more and more people making it easier to buy: funds being set up, custodies being done, at one point we’ll get an ETF.”

Gold prices hitting 9-year highs amid coronavirus

Novogratz’s call to prioritize gold over Bitcoin comes amid gold prices hitting a nine-year high. On July 9, gold broke a $1,800 threshold, reaching the highest price since September 2011. The soaring gold prices are apparently a result of economic fears over the novel coronavirus. As of press time, spot gold trades at $1,810, up about 0.1% over the past 24 hours.

Novogratz is known as one of the biggest crypto and blockchain investors. He runs Galaxy Digital, a major crypto venture capital firm and trading desk. Alongside investing in the emerging industry, Novogratz is bullish on BTC price, predicting Bitcoin to hit $20,000 by the end of 2020.

Last year, Novogratz predicted that institutional interest would push the Bitcoin price back to $20,000 before the end of 2019. The cryptocurrency failed to meet these expectations, eventually trading around $7,000 at year’s end.

Read More

Related Topics:
Continue Reading

Uncategorized

Core Scientific seals $77M Bitmain deal for 27K Bitcoin mining rigs

The deal was first finalized in August, with Anchorage as another party agreeing to an equity stake in the bankrupt crypto miner.
Cryptocurrency…

Published

10 mins ago

on

September 22, 2023

By

The deal was first finalized in August, with Anchorage as another party agreeing to an equity stake in the bankrupt crypto miner.

Cryptocurrency mining hardware maker Bitmain and bankrupt crytpto mining firm Core Scientific have agreed on a combination of equity and cash to finalize the deal on the expansion of mining facilities.  

The deal between the two mining companies will see Bitmain supply 27,000 Bitcoin (BTC) mining rigs for $23 million in cash along with $53.9 million worth of common stock of the bankrupt firm. Apart from the mining hardware purchase deal, Bitmain and Core Scientific have signed a new hosting arrangement to assist Bitmain's mining operations.

The deal was finalized earlier last month when a court filing highlighted Bitmain’s plan to sell mining hardware in exchange for cash and equity as part of Core Scientific’s restructuring plan. Apart from Bitmain, the restructuring plan also included Anchorage, BlockFi and Mass Mutual Asset Finance. Apart from Anchorage, all other three firms chose a mix of cash and equity options to settle their claims.

Related: Core Scientific appoints Adam Sullivan as CEO amid restructuring process

The expansion and investment plan by Bitmain will come into force by the fourth quarter of this year pending approval from a judge slated for the final quarter. Once approved, the added hardware will potentially add 4.1 exahashes to Core Scinfitic’s hash rate. The two crypto mining focused companies have also agreed to work together to upgrade Bitmain’s last-generation miners hosted at Core Scientific’s data centres to increase the firm's productivity further.

Core Scientific filed for Chapter 11 bankruptcy in December 2022, citing the financial crisis and declining price of Bitcoin as the key reasons behind their decision. The firm started facing trouble in the weeks leading upto its eventual collapse in December owing to the market turmoil.

Magazine: Get your money back: The weird world of crypto litigation

Read More

Continue Reading

Uncategorized

Bitcoin mining can help reduce up to 8% of global emissions: Study

The report highlighted that Bitcoin mining can convert wasted methane emissions into less harmful emissions.
A paper published by…

Published

10 mins ago

on

September 22, 2023

By

The report highlighted that Bitcoin mining can convert wasted methane emissions into less harmful emissions.

A paper published by the Institute of Risk Management (IRM) concluded that Bitcoin (BTC) has the potential to be a catalyst for a global energy transition. 

IRM Energy and Renewables Group members Dylan Campbell and Alexander Larsen published a report called “Bitcoin and the Energy Transition: From Risk to Opportunity.” The paper argued that while BTC was perceived as a risk because of its energy consumption, it can also become a catalyst for energy transition and could lead to new solutions for energy challenges across the globe.

Within the report, the authors also highlighted the important function of energy and the increasing need for reliable, clean and more affordable sources of energy. Despite the criticisms of Bitcoin's energy intensity, the study provided a more balanced view of Bitcoin by also showing the potential benefits that BTC can bring to the energy industry.

Amount of vented methane that can be used in Bitcoin mining. Source: IRM

According to the report, Bitcoin mining can reduce global emissions by up to 8% by 2030. This can be done by converting the world’s wasted methane emissions into less harmful emissions. The report cited a theoretical case saying that using captured methane to power Bitcoin mining operations can reduce the amount of methane vented into the atmosphere. 

Related: Bitcoin energy pivot achieves what ‘few industries can claim’ — Bloomberg analyst

The paper also presented various other opportunities that allow Bitcoin to contribute to the energy sector. According to the report, Bitcoin can also contribute to energy efficiency through electricity grid management by using Bitcoin miners and transferring heat from miners to greenhouses.

“We have shown that while Bitcoin is a consumer of electricity, this does not translate to it being a high emitter of carbon dioxide and other atmospheric pollutants. Bitcoin can be the catalyst to a cleaner, more energy-abundant future for all,” the authors wrote.

Magazine: How to protect your crypto in a volatile market: Bitcoin OGs and experts weigh in

Read More

Continue Reading

International

Diamond Prices Are Crashing, Forcing Russian Mining Giant To Halt Sales

Diamond Prices Are Crashing, Forcing Russian Mining Giant To Halt Sales

A surge in lab-grown diamonds flooding the market, coupled with a…

Published

38 mins ago

on

September 22, 2023

By

Diamond Prices Are Crashing, Forcing Russian Mining Giant To Halt Sales

A surge in lab-grown diamonds flooding the market, coupled with a decline in luxury spending, has forced Russian mining giant Alrosa PJSC to temporarily suspend rough diamond sales to prevent prices from crashing further. 

Bloomberg obtained a memo from Alrosa addressed to its customers, explaining rough diamond sales for September and October have been suspended as the company "strives to reverse the existing trend of diminishing demand." 

Diamonds, watches, and other jewelry soared during the pandemic and peaked in the first half of 2022. We have covered the Rolex boom and bust extensively and have turned our attention to crashing diamond prices in 2023:

Besides the luxury spending slowdown due to tapped-out consumers, man-made diamonds have been all the rage because these gems are only a fraction of the cost. The big fear of the natural diamond industry is starting to be realized as consumers accept lab-grown diamonds in rings. 

Edahn Golan, an independent diamond industry analyst, told CNN Business consumers are flocking to man-made diamonds because the most popular one-carat round man-made diamond for an engagement ring in March was $2,318. He said that's 73% cheaper than a natural diamond of the same size, cut, and clarity. 

The latest data from the Diamond Index via the International Diamond Exchange shows prices have crashed well below pre-Covid levels. 

Alrosa competes with De Beers, the biggest producer of diamonds, both of which have been rocked by a rough diamond sales slowdown this year after a massive boom during the pandemic. 

Last week, Reuters reported the Group of Seven (G7) nations might be preparing to reshape the global diamond supply chain by placing restrictions on Alrosa. 

 

 

 

 

 

 

Tyler Durden Fri, 09/22/2023 - 05:45

Read More

Continue Reading

Trending