Galaxy Digital Capital Management says bitcoin’s growth potential is greater than gold following a rise in mainstream market presence.
According to a new report, the leading digital asset investment firm says macro investments into bitcoin, including by legendary trader Paul Tudor Jones and tech giant MicroStrategy, have stimulated an uptick in mainstream market presence.
The report highlights bitcoin’s growing attraction for investors as a hedge against inflation, with even greater growth potential than the long-time store-of-value favorite gold.
Galaxy Digital says bitcoin has a “60x” opportunity for growth if the digital asset can continue to gain against precious metals.
The report reads,
Gold’s market capitalization is currently over $12 trillion. Bitcoin’s value, on the other hand, is currently around $200 billion, less than 2% of the gold market. That presents a potential greater than 60x market expansion opportunity if Bitcoin grows to gold’s level as an alternative, digital store of value asset.
The investment firm, founded by former hedge fund manager Michael Novogratz, highlighted an increase in institutional investment for bitcoin throughout the coronavirus pandemic.
The report continues,
Top investors and large institutions are adopting it as an inflation hedge, including macro legend Paul Tudor Jones and MicroStrategy Inc.
While the report called it difficult to predict the future of digital money, it noted that bitcoin has a significant head start as the “leading global store of value” alternative to gold.
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