Former Fortress Hedge Fund Manager and billionaire investor Mike Novogratz fears that the unstoppable rise in the value of Bitcoin and its prominence in the mainstream media could bring heavy regulation to the crypto market. Since China and Russia have cracked down hard on the regulations of Bitcoin, no other countries have decide to regulate the king of cryptocurrencies and the market itself.
Despite this, Novogratz still believes that Bitcoin is difficult to regulate and that it is hard for governments to implement regulations on the crypto market with immediate effect.
Novogratz said in an interview with CNBC:
“I’ve got concerns that if price movements go higher, we’re going to get more regulation. But I think it’s hard to shut down. … I don’t think that’s a probability. One of the big risks out there right now is that prices are moving so fast that regulators are going to get nervous,” he added. “I could legitimately see Bitcoin go $13,000, $14,000, $20,000, $25,000 and see somebody balk.”
Bitcoin keeps rising and rising and it surpassed the $13,000 target today and it seems that regulators are failing to slow it down. Novogratz claims that one of the reason for Bitcoin’s insane rise is:
“We’re in a speculative frenzy. Period. Stop. How long can it go? Who knows. What’s interesting about this is it’s global.”
Another issue with regulating the Bitcoin is accurately identifying what Bitcoin actually is. Is it a currency or is it an asset? Novogratz explained:
“Bitcoin is winning out as digital gold. I don’t think it’s going to be a currency. … Nothing that volatile is going to be a currency.”