Mike Novogratz: Bitcoin 'Was Always a Confidence Game'

Siamak Masnavi

On Friday (March 13), Michael Novogratz, a former Goldman Sachs partner, as well as Founder, Chairman, and CEO of crypto-focused merchant bank Galaxy Digital, gave his latest thoughts on crypto.

Novogratz's comments on Bitcoin (and crypto in general) were delivered on Twitter on Friday (March 13) at 1:37 UTC, which is roughly 37 minutes after the Bitcoin price hit $4,240, the lowest price it had been since 2 April 2019.

BTC-USD 12 Month Chart on 15 March 2020.png

Here was Novogratz's tweet:

This tweet is a little confusing since Novogratz has been saying for quite a while now that Bitcoin is going to become "digital gold."

For example, this is what he said about Bitcoin back in February 2019 in an interview with Bloomberg Television:

"We are not gonna bubble back up... We are going to grind back up...

"In the next run-up, you're really going to separate Bitcoin from a lot of the other cryptocurrencies... I think if there is 118 elements on the periodic table, only, gold, is valuable just because it's a store of value... Bitcoin is going to be digital gold.

"There's going to be a place where you have soveriegn money. It's not U.S. money. It's not Chinese money. It's sovereign. And so, sovereignty costs a lot. It should cost a lot."

This tweet almost makes it look like he has lost all of his confidence in Bitcoin, but if this is the case, how could this have happened so quickly to such an experienced trader since at the beginning of this month he was explaining to people on Twitter explain why Bitcoin has been trading recently like a risk asset:

As for the answer to Novogratz's question on Twitter about what is going to bring confidence back to Bitcoin, perhaps, the most popular answer came from Lightning Network advocate/developer Pierre Rochard: