Ardent Bitcoin supporter Mike Novogratz spoke on Real Vision Interview last Friday discussing the growth of Bitcoin and the crypto market, and stated that Bitcoin was able to accelerate its growth this year due to the COVID-19 pandemic. The crisis saw droves of new market entrants into the crypto market, and leading digital assets such as Bitcoin and Ethereum saw 216% and 390% year-to-date returns respectively in a wildly bountiful year, despite the severe and negative impacts the global pandemic brought about.
“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,” Novogratz said.
This year’s political, economic and social landscape was a nurturing seedbed for digital assets acceptance and adoption. Firstly, the world’s superpower US’ monetary policies, including the multiple stimulus packages, lowering of interest fees, and the Federal Reserve loaning more than $1.5 trillion dollars to other financial institutions have all taken a toll on the economy. This has sent investors into the new digital assets market, especially Bitcoin and Ethereum, which have performed spectacularly well in 2020.
Novogratz also points out that while the world has moved towards a digital and technological age, there was still resistance towards certain processes and functions being accessed online on a digital space. However, the extended lockdowns of varying levels of restrictions have made getting used to a digital life mandatory. The best example of this would be the use of video chat platform Zoom, and even those who were uncomfortable with virtual meetings had to make do. Digital wallets, as an extension, no longer seem as daunting to potential users.
This is happening as well-known institutional players and more retail investors enter a much more mature market, strengthening the case for digital assets.
Previously, PayPal CEO Dan Schulman offered a similar perspective to that of Novogratz, saying that without the pandemic it would have taken decades for Bitcoin to reach the level of growth it has right now. Instead, because of COVID-19, the market’s growth has accelerated, needing only six months to accomplish historical milestones.