Legendary hedge fund manager and cryptocurrency bull Mike Novogratz is bothered that the surging bitcoin price will cause nervous regulators to try to cool down the markets by imposing regulations on cryptocurrency usage.
Novogratz, a former Fortress principal the person currently prepared to launch a $500 million crypto-asset hedge fund, stated on CNBC’s “Power Lunch” that he’s not concerned because of the price itself — bigger predicted that bitcoin could “easily” reach $40,000 by the end of 2019 — but rather the rapidity of its climb will encourage regulators to look at a more active role in overseeing the markets, perhaps by placing new rules on cryptocurrency usage.
“One of several big risks available on the market right now is this : prices are moving so quick that regulators can get nervous,” he was quoted saying. “I could legitimately see bitcoin go $13,000, $14,000, $20,000, $25,000 to see somebody balk.”
Until now, he explained, regulators practically in parts of everyone have been relatively accommodating of bitcoin. Although a lot in the community have bristled at regulations similar to New York state’s notorious BitLicense, Novogratz asserted most regulators were working with bitcoin — as an alternative to against it.
That may change, however, in the event the bitcoin price keeps rising at a breakneck pace and regulators start to perceive it as being a threat to the steadiness of the domestic economy.
“I’ve got concern should price movements go higher we’re going to get more regulation,” Novogratz said. But “I think it’s very hard to shut down. … I don’t think that’s a probability.”
While the federal government has little electricity to regulate the Bitcoin network itself, regulators could make life a hardship on bitcoin users, and even more significantly — businesses that engage with cryptocurrency or provide services to bitcoin users.
In the short-term, a hostile regulatory stance could render bitcoin a lot more volatile of computer already is and potentially lead to a severe price correction. Nevertheless, as Novogratz brought up, cryptocurrency usage just isn’t isolated solitary geographic region, limiting draught beer regulators to curtail its ascent.
“We’re at a speculative frenzy. Period. Stop. How long can it go? argument,” Novogratz concluded, contrasting an upswing of bitcoin in the dot-com bubble belonging to the late 1990s, they says was largely a U.S. phenomenon.?“What’s interesting regarding this is it’s global”.