Novogratz: There May Be a Bubble in Bitcoin, But Bitcoin Itself Isn’t a Bubble

 Legendary billionaire hedge fund investor Mike Novogratz stated that there may be a bubble in bitcoin in certain regions but the cryptocurrency itself isn’t a bubble.As CCN previously reported, Novogratz noted that bitcoin and the cryptocurrency market could become the biggest bubble “of our lifetimes.”“I think this [crypto] is going to be the biggest bubble of our lifetimes by a long shot. To be fair, this is a bubble and there’s a lot of fraud mixed in. We look at tons of projects. And some get funded, and they literally look like Ponzis,” said Novogratz.Novogratz further emphasized that there were many bubbles in the past around innovative and revolutionary technologies such as the Internet. The dotcom bubble for instance overvalued projects by significant margins, with several companies selling at billions of dollars by owning a domain or an online business.But, the Internet itself was evidently not a bubble. It has transformed every industry in the world by revolutionizing communication and processing of information. There was a bubble around Internet, as demonstrated by the dotcom era, however the technology itself was not a bubble, a fraud, or a scam.

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The dotcom era surrounding the Internet technology is similar to non substantial and scam-like projects surrounding bitcoin and the global cryptocurrency market. There exists many fraudulent companies within the cryptocurrency market and projects that operate like ponzi schemes structurally, but there are also a few projects that genuinely compliment bitcoin by providing technologies or solutions the Bitcoin blockchain network currently lacks, like Ethereum.“Historically, manias or bubbles happen around things that fundamentally change the way we live. If it’s the railroad bubble or the Internet bubble, it really changed the way we live,” said Novogratz.Furthermore, as Citigroup’s recent research revealed, if some analysts decide to describe bitcoin itself as a bubble, virtually every technology, company, and asset tha demonstrate significant gains are also bubbles. Throughout the past two decades, analysts claimed Amazon, Tesla, Facebook, UK properties, second hand cars, and other forms of investments are “bubbles.”The Citigroup research paper emphasized that if bitcoin is considered a bubble, everything else is a bubble as well.