Regulators Could Start Stirring Again if Bitcoin Continues Rising: Mike Novogratz
Bitcoin is starting to make a lot of noise which could attract unwanted attention from regulators.
Since China, Russia, and a few others cracked down hard on Bitcoin, it has been relatively quiet on the regulations front as Bitcoin has continued to soar unbridled. However, the head scratching on how to regulate continues.
The next fear, for Former Fortress Hedge Fund Manager Michael Novogratz, is that Bitcoin’s continued rise and prominence in the mainstream media could reawaken the regulation beast.
However, Novogratz still feels that Bitcoin is difficult to regulate and it will be hard for governments to make an impact immediately.
“It’s hard to shut down…”
Novogratz, who has been outspoken on Bitcoin for some time now, claiming it could be a bubble, but one to profit from has his concerns now.
"I've got concerns that if price movements go higher, we're going to get more regulation," Novogratz said. “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."
Why is it rising to dangerous levels?
Bitcoin’s rise, while roundly celebrated by all involved, has also made many stop and wonder how or when this will all end. Will it pop, come crashing down, continue or get stamped out. It has become a scary upride.
With regulators failing to slow it the first time, there could be an even heavier blow coming that could perhaps cause some derailing. However, before that happens, it is important to understand what is making it hit such heights.
"We're in a speculative frenzy. Period. Stop. How long can it go? Who knows," Novogratz said. "What's interesting about this is it's global."
Its an asset
Another reason that Bitcoin has hit such heights must also be attributed to it finding its identity. Many were scratching their heads as to what Bitcoin is - a currency or an asset - but recent changes have set it straight.
"Bitcoin is winning out as digital gold," Novogratz explained. "I don't think it's going to be a currency. … Nothing that volatile is going to be a currency."