Bitcoin will take more market cap from gold

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Now that the price of bitcoin has returned above $ 50,000, cryptocurrencies are back in the limelight. A rising tide tends to lift all boats, and the rise in bitcoin has pushed coins up by double-digit percentages this week. Over the past seven days, bitcoin’s value has swelled by more than 25%, while Ethereum has risen by more than 20% and rival blockchain Solana has grown by 15%.

Altcoin rally

The altcoin rally prompts investors to seek out the next potential bitcoin. But according to Galaxy Digital CEO Mike Novogratz, there is only one digital gold and that is bitcoin. He told CNBC,

Bitcoin is digital gold. I think it’s won that way. I think it will continue to be adopted and that it will take more and more market capitalization of gold.

Novogratz explained how the $ 1 trillion bitcoin market cap is roughly 12% of gold. According to the Bitcoin bull, it is only a matter of time before the leading cryptocurrency reaches the size of the multibillion-dollar gold market.

Incidentally, the use case of bitcoin as a store of value asset has recently come under criticism when it failed to act as a hedge during the Evergrande debacle which spilled over into global prices. cryptography.

Technical game

Novogratz also discussed major blockchain networks, including Ethereum and Solana, saying they compete to be part of the tech game.

Solana, in particular, sought the crown of Ethereums. Solanas’ fast transaction times and reduced costs fueled a major rally in the native blockchain currency, SOL. The price of SOL has gone from $ 1.51 at the start of 2021 to $ 154 today, a gain of over 10,000%.

The head of Galaxy Digital noted that these layer one solutions, as they are known, are technological bets. Their appeal is based on user adoption as well as the strength of the product and the respective communities.

Novogratz said choosing the right protocols, the technology that relies on layer one solutions, is not for the faint of heart. There is extreme volatility inherent in the asset class. He advises investors to keep it simple unless they have the time and know-how to do it differently.

The story continues

Market leaders are convinced that the next phase of the bitcoin bull market is underway. If they’re right, the home stretch of 2021 could be a wild ride for digital gold and blockchain tech games.

This article originally appeared on FX Empire

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