Following the recent shutdown of the world’s markets and borders amid the COVID-19 pandemic, which threatens to surpass the 2008 financial crash, Galaxy digital founder, Mike Novogratz is positive that this year might just as well be the making of Cryptocurrency.
He draws this conclusion from the precedence of the Bitcoin (BTC)’s creation in 2008 amid the Great Recession, and following that precedence, believes this year as make-or-break for the cryptocurrency. He made this known in a tweet posted on March 22 — hours after the United States Congress failed to reach a bipartisan agreement on a proposed $2 trillion economic support package.
In his tweet, he wrote, “$BTC will continue to be volatile over the next few months but the macro backdrop is WHY it was created. This will be and needs to be BTC’s year.”
With the pandemic stretching into a fifth week, infiltering more countries and aggravated by a massive decrease in the demand and crash of oil price, petrified investors have flooded the market with coins in a desperation to sell them off thus causing a sharp plunge in the price of coins. Investors have also begun abandoning low risk commodities such as gold.
But in the midst of this all, Novogratz still argues that Bitcoin was immune to the impact of the liquidation. In his words, he said;
“[Bitcoin] was always a confidence game. All crypto is. And it appears global confidence in just about anything has evaporated.”
In his recent tweet he pointed out the potential opportunities for the cryptocurrency amid the economic crisis.
According to him, Bitcoin —as a non-inflationary medium of exchange— was designed specifically to serve as a substitute to the fluctuating world monetary system mapped with severe uncertainties.
He further appealed to Congress not to repeat the failure of TARP, rumored as the contentious bailout fund passed in 2008 which had left the structural weaknesses of the system almost intact.