Mike Novogratz – a billionaire investor and former hedge fund manager – is not an insensitive man. He acknowledges that 2020 was wracked with hardship, and that the year has been difficult primarily thanks to the spread of the coronavirus pandemic. He sees that it has led to considerable damage in our economy and has contributed to numerous deaths.
Novogratz Believes COVID Had a Positive Side
However, he’s not one to just turn his back on the positives altogether. In many ways, he believes the spread of COVID has helped to solidify the cryptocurrency revolution that we’re now witnessing at the time of writing. In a recent interview, he acknowledges that while COVID is the cause of many of the world’s present problems, it has also done wonders for digital currency.
Novogratz explains:
In five years from now, we are going to see 2020, as horrible as corona was, and lots of people have lost their lives… we are going to look back and in some weird way, this is going to have been a blessing for the cryptocurrency revolution.
He claims that two trends occurred this year that really pushed the world’s primary cryptocurrencies (bitcoin and Ethereum) into heavily bullish territory that garnered their owners solid returns. He says that the first one was the response of worldwide governments to the spread of the virus. The U.S. Federal Reserve, for example, immediately cut interest loans, and provided more than $1 trillion in loans to various banks and small businesses throughout the country.
In addition, it also increased its purchase of treasury securities. This was designed to give the economy a little more stability. However, in the long run, the Fed also overprinted U.S. dollars for stimulus measures, which led to inflation and caused many people to view bitcoin and cryptocurrencies as “safe havens” or hedge tools that could be used to protect one’s wealth during times of strife.
The second trend was that many people were not allowed out of their homes. They could not shop in stores. They couldn’t eat in restaurants. They couldn’t go to barbers to get their hair cut. Many people, for a long time, were shut in and being forced to get used to digital lifestyles that ultimately got them more used to digital currencies and how they worked.
Digital Lives Means Digital Currency
Novogratz comments:
This digitalization of everything – Zoom is part of our life, now.
Many brokerages and large investment firms have stated that the demand for bitcoin and other forms of crypto has reached sky-high levels that have never been seen before. They are presently working to make it easier for their clients to potentially get their hands on crypto, as digital currency is now being viewed as a solid asset that can diversify one’s portfolio and keep money in check.
