If there ever was an award for best Canadian Bitcoin bull, the inaugural recipient should be billionaire entrepreneur Michael Novogratz. Novogratz is the CEO of Galaxy Digital Holdings, a firm dedicated to helping institutional investors pour capital into Bitcoin and other cryptocurrencies. He’s in the news on a regular basis talking about how great Bitcoin is, consistently predicting that the price will move up again and again over time. It should come as no surprise that the head of a large publicly traded company whose business revolves around cryptocurrency would want to pump it. Now, Novogratz is putting his Bitcoin where his mouth is.
He placed a bet on democratic presidential candidate Joe Biden to win the election and become the 46th president in the history of the United States. With Biden officially surpassing the popular vote in Pennsylvania ahead of Donald Trump this past weekend, he officially amassed the minimum 270 electoral votes required to be named President-Elect, winning Novogratz 0.5 BTC.
The Surprising Thing He Did with His Winnings
Billionaires don’t usually become billionaires by giving away all of their wealth. After all, you have to have capital in order to invest it. The thing about Novogratz is, he’s already rich, so over the weekend he announced on Twitter that he would give away the 0.5 BTC he pocketed.
The way he chose to give away his winnings is the best part. He didn’t just have users enter a lottery. He didn’t randomly pick somebody on his Twitter feed. Instead, Novogratz let his followers know that he was thinking of a number between one and 1,000 and that the first person to come up with the correct guess would win his 0.5 BTC. The winning Twitter user, Adelgary, correctly guessed that the number was 826, explaining that he picked to the number because he lived in China for eight years and his birthdate is on the 26th.
With the price of Bitcoin hovering around $15,000 USD, the win by Adelgary is worth over $7,000 USD. That’s an important thing to note because if the presidential election was at this time last year, the lucky Twitter user would only be looking at half of that amount. Since the start of the calendar year, Bitcoin is up around 115% of its value. The fact that it has more than doubled in price is a direct reflection of all of the institutional capital that is flowing into the cryptocurrency market this year.
Why the Value of Winning Wagers May Continue to Go Up
Part of increasing your bankroll in the long term as a gambler is trying to portion your bets properly and wager more on outcomes you feel more confident about and less on the outcomes you’re not sure about. If investing in and holding Bitcoin is a gamble, you probably won’t find a better time to do so in the next several months. The truth is that even if Donald Trump somehow finds a way to successfully challenge the results of the election in court, no matter who is living in the White House in January, the United States has no choice but to approve another government stimulus package in 2021.
The last time that happened, the price of Bitcoin shot up as many investors took the stimulus check they received and invested it in Bitcoin. History definitely repeats itself and there is no reason to think that investors and gamblers alike won’t go straight back to Bitcoin with their next stimulus check. It’s only a matter of time before that next wave hits (and no, we’re not talking about the coronavirus here).
The fact that a billionaire running a publicly traded cryptocurrency company gave away some Bitcoin is cool, but don’t expect too much of that generosity in the future. More and more people are going to hoard it, buy Bitcoin and treat it like an investment. That’s why betting on Bitcoin is a great gamble right now.