For billionaire business mogul and trader Mike Novogratz, we're only beginning to see the potential of the cryptocurrency space. The former Goldman Sachs and Fortress trader has predicted that the international digital currency market could balloon up to about $20 trillion, according to a report by Coin Insider.

Novogratz made his bold prediction at the Invest Summit, suggesting that if the spike in prices late in the last year and early in 2018 was a sign of a bubble, he expected that the industry would have died by now. While digital currencies are down significantly since the high point several months ago, they are far from dead.

Novogratz drew comparisons between the cryptocurrency space of today and the internet bubble in the 1990s, suggesting that digital currency "is a global revolution. The internet bubble was only a U.S. thing. It was rich U.S. people participating." By contrast, he added, cryptocurrency "is global. There are kids in Bangladesh buying coins. It is monstrous in Tokyo, in South Korea, in China, in India, and in Russia. We've got a global market and a global mania. This will feel like a bubble when we're at $20 trillion."

Correction Coming?

Novogratz also predicted that the cryptocurrency market will correct itself following the dip into the middle of 2018. At its highest, the cryptocurrency industry has so far reached up to about $900 billion; Novogratz thinks it will eventually be more than 20 times larger.

What might prompt such a dramatic level of growth? Novogratz believes that, while retail and individual investors have so far been crucial to the growth of the industry, institutional investors will be key to the next phase.

"It won't go there right away," he said, referring to the $20 trillion target. "What is going to happen is, one of these intrepid pension funds, somebody who is a market leader, is going to say, you know what? We've got custody, Goldman Sachs is involved, Bloomberg has an index I can track my performance against, and they're going to buy. And all of the sudden, the second guy buys. The same FOMO [fear of missing out] that you saw in retail [will be] demonstrated by institutional investors."

Investing in cryptocurrencies and Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns bitcoin and ripple.