- Andre Yunque
Mike Novogratz Bets Big on Bitcoin and Ether
After a less than perfect exit from the hedge fund industry, Fortress’ former global macro whiz, Michael Novogratz, goes big on digital currencies.
“Ten percent of my net worth is in this space,” Novogratz said at a forum held at the Harvard Business School Club of New York Wednesday. He declined to say exactly how wealthy he is, but he’s a former hedge fund manager at Fortress Investment Group and a Goldman Sachs partner who made the Forbes billionaire list in 2008.
It’s the “best investment of my life,” Novogratz said.
Novogratz has been a Bitcoin fan for quite some time. Back in 2013, he announced that the cryptocurrency’s value would rise and urged people to invest in it, predicting – correctly – that it would soar to $1,000. He now believes that it’ll reach $2,000 in value.
He was also an early investor in Ether. After meeting Ethereum co-creator Vitalik Buterin at a party, Novogratz was impressed with him enough that he started keeping an eye on the digital currency. He reportedly started buying them at $1 a pop, and according to CNN Money, now trades at $48.
However, as bullish as he is on digital currencies, Novogratz does see some storm clouds for it on the horizon:
“…he also warned the Harvard Business School Club crowd that there will “likely be a bubble” in digital currencies.”
Though he did suggest one way of tackling it:
“The best way to handle it, he argues, is the old Wall Street trick of diversification. Put a little money in a lot of different plays in digital currency.”
In any case, Novogratz says that he will continue investing in digital currencies and Blockchain, saying that while he’s not sure how it’ll play out, we are witnessing the “third inning” of the digital asset revolution.
Photo: BTC Keychain