Mike Novogratz: Bitcoin's new price plunge is no cause for concern
Mike Novogratz: Bitcoin's new price plunge is no cause for concernMike Novogratz: Bitcoin's new price plunge is no cause for concernMike NovogratzMike Novogratz

El Salvador is now learning why the rest of the world isn’t rushing to use Bitcoin for daily transactions .

The crypto market has been strong for the past eight weeks. Until El Salvador’s government shut down its bitcoin app Chiva to fix technical issues. And then this happened.

In a matter of minutes, the bitcoin price plunged nearly 17% to $43,050 – its lowest level in nearly a month. Other cryptocurrencies and related stocks plunged as well.

Billionaire and longtime crypto bull Mike Novogratz argues that bitcoin investors got “a little too excited,” and for good reason. No bitcoin investor wants to miss the next big crypto trend on the internet today.

Big companies are jumping on the crypto bandwagon

To back up his words, and perhaps to give bitcoin prices a bit of a boost, Mike pointed to the example of large corporations that are now jumping on the crypto bandwagon.

Case in point, Visa Inc. recently purchased a $150,000 digital avatar, a type of NFT (s.g. Non-Fungible Token).

Last week, Amazon posted a job opening for a “Digital Currency and Blockchain Product Lead.” Walmart Inc. is also looking for a crypto expert.

Retail investors have also shown interest in buying cryptocurrencies and other digital assets, and that could be one reason why bitcoin prices will rise in the future.

After all, the more buyers, the higher the prices.

So, according to Mike Novogratz, the new bitcoin price drop is nothing to worry about. It should be seen as “air being let out of the balloon.”

Will Chivo’s shaky launch in El Salvador affect bitcoin adoption?

Mike says that technical glitches that could hamper the launch of the Chivo bitcoin wallet app plagued, are inevitable. And that the country’s government will smooth out the system problems over time.

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He is confident that El Salvador’s crypto system will have changed by the time we revisit this story in the next three to six months. For the better.

In his view, it’s difficult to do something on a large scale like El Salvador has done. So it’s only fair that the world give the Latin American country a chance to get it right.

El Salvador’s government has tasked BitGo – a cryptocurrency startup owned by Mike Novogratz – with rolling out the infrastructure and security of bitcoin wallet app Chivo.

Mike’s company, Galaxy Digital, bought BitGo in May for about $1.2 billion.

For now, no one fully understands the crypto market. But in the long run, bitcoin prices will most likely rise. Thanks to major institutions trusting Bitcoin as a store of value.