Bitcoin Forum

Billionaire investor Mike Novogratz has said that he is holding ten percent of his net worth in digital currencies such as Bitcoin and Ether.

Speaking at a recent forum held at the Harvard Business School Club of New York, Novogratz, who is a former hedge fund manager at Fortress Investment Group and a Goldman Sachs partner, made the Forbes billionaire list in 2008.

According to a report from CNN Money, during his talk, Novogratz declined to disclose how much his net worth was, but said that investing in the digital currency space, was:


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The Rise and Fall of Bitcoin

Just this year alone, bitcoin has had a rollercoaster ride that has seen its price rise to a high of $1,350 at the beginning of March and then drop below $1,000 after the SEC’s ETF rejection before steadily picking itself up again to trade around the $1,200 today. Certainly not an investment choice for the fainted hearted, the digital currency space is surpassing most people’s expectations and appears to be continuing its upward trend.

So much so, that Novogratz is of the opinion that the price of Bitcoin could increase to as high as $2,000. He’s not the only one, though, who is projecting high prices for the currency. Bobby Lee, BTCC’s co-founder and CEO, predicted late February that Bitcoin could increase to between $5,000 and $11,000 by 2020, after the block reward halving.

However, while Novogratz seems happy with his investments in Bitcoin, he added during his talk that there could be ‘a bubble’ in digital currencies. One way that he is avoiding any potential pitfalls is by also investing in the second largest digital currency, Ether.

When the billionaire initially invested in Ethereum, it was worth around $1; today, its price has risen to just under $50.

Interest in Ether Piques

When Novogratz was still at Fortress Investment Group, he helped the company invest in bitcoin.

However, since leaving at the end of 2015, the former hedge fund manager has been showing a keen interest in Bitcoin’s rival cryptocurrency, Ether, which has attracted a large following who are keen for its value to rise.

For those who can, it appears as though investing in the digital currency space is becoming a viable method to make some money.

How long it remains is to be seen, but while it’s important to know when to invest in the currency, it’s just as important to know when to sell too.
https://www.cryptocoinsnews.com/billionaire-investor-has-10-of-his-money-in-bitcoin-ether/

They have found a safe haven in investing in bitcoin and other crypto's. Those guys really know how to make money and putting some in crypto-currency is just another portfolio's for them. Indeed, it is wise to diversify your investments across different portfolio's, as you should not put all your eggs in one basket. I'm sure he is not the only one that have big investments in bitcoin, but there are still who haven't go out in the open yet.

I like how people that were totally not into crypto have made an important shift to allocate a serious percentage of their wealth/capital into Bitcoin and Ether. It doesn't happen quite often that people move out their comfort zone to try out something new with a massive potential. I hope more money from non crypto people will flow into Bitcoin, where I aim at them taking a long term position in Bitcoin (preferably as store of value).

The transaction of the bitcoin is too slow so that has detered many potential investors.

Idgaf how much I could make from ether, it's just another shitty centralized currency that I want nothing to do with. It's the opposite of what all cryptocurrencies should stand for. I think he's just a follower and he only invested because they're the biggest. That's pretty dumb and takes almost 0 knowledge. Oh durp these 2 look good since they're the biggest. Great analysis.

Not really. It's the confirmation times that you are referring to, and not the transaction speed as it is nearly instant. Investors just buy themselves a position into Bitcoin and let it rest for a good while. Traders use exchanges to trade on, and thus there isn't anything that bothers them. The slower confirmations affect those that use Bitcoin to send and receive transactions, but refuse to add proper fees.

Maybe he invested for that very thing, because it's something different. We don't know what the governments will do, maybe they won't like the idea of a decentralized crypto taking over the financial sector. This would be a chance for ETH, to fill the niche and become accepted where Bitcoin is being fought and banned. He's smart, he's dividing his assets and investing in two different platforms that don't depend on each other.

Are you saying that Bitcoin could be worth much more if it became faster? Maybe that's what the current investors are hoping for.

We all have to agree he's a smart man. If I had enough money to sustain myself for the  next 20 or more years, I'd invest even more than 10% and cryptocurrencies would be my first choice.

I think Novogratz is investing in bitcoin as store of value like you said. He had enough money, so I don't think he is going to sell it just for the profit. I also hoping that there were be a lot of people seeing bitcoin as store of value, so investing in it in for long terms seems logical for those who have a lot of money.

As much as we might not like ETH we can't deny that their development process is superior than BTC.
Mainly because it is so centralized, it is easier to upgrade this coins. AFAIK Ethereum has gone through 4 hard forks already.
Even after that emergency rollback fork after the DAO fail didn't affect coin stability all that much, since that time value of ETH rose more than 4x.

People who have lots of money have lots of investment opportunities, in my opinion this is one more investment opportunity he has seen.

He will not sell so soon.

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This price analysis make me more cautious ;D

But despite these facts and advantages, ETH is not as popular as bitcoin. I also bought myself some ETH coins, but I do not have much hope for this currency. I have more confidence Bitcoin

10% of a billionaire's net worth is in crypto.
The scary part is what happens if he tries to exit. Can the markets take such shocks?

Yes, this is a very large amount. It is not known what will happen if this person decides to sell their assets.
This is the situation when whales manipulate the price of cryptocurrency

Don't you have other things to worry about? Do you remember FBI auctions in the recent years? People bought a lot of coins back then and scared sheep were starting threads that these people are buying to dump and we'll have a huge decrease in price. Of course nothing like that happened. We don't know how many of these investors still hold till this day, but if they have at least doubled their investment. If they don't the market swallowed them with ease.

Very lucky guy to knows a good investment when he sees one. ;D

He is a Harvard graduate and was an investment banker on wall street after all! ;)

So you can trust him and buy bitcoins too? Each has its own investment strategy.
I, too, are ready to invest in bitcoin, because I had a good personal opinion about him based on personal experience

Investment in cryptocurrency? Without any credit rating from a top rating agency?
Unbelievable!

Oh, sorry, I leave out that he is FORMER hedge fund manager.

Everyone decides what to invest in. I, too, am ready to invest a large amount of money into the cryptocurrency. And not 10%, but more

He took the risk and he made right now a $100 pure profit in one day for every 1 bitcoin he has. Lucky guy... I want a time machine!

And really very funny. Probably many Bitcoin users have such thoughts about Time Machine. Only imagine how much you can buy Bitcoin and even at the dawn of its development. But this does not happen.

Well anyone who can do some basic math can tell you that yes it would shock the market, but 10% of a billion or 100million won't crash the market (fully lol).

It seems to me that this is the opposite should be a positive impact on the market, or I do not understand the present situation as it is?

He is very pessimistic person. He must say "I am holding 90% of my net worth in digital currencies such as Bitcoin and Ether"

If that is true, I think he is very optismistic.

ROFL. Read it again, he said the exact opposite. Holding 90% of your assets in anything is stupid/naive/uneducated. Any investor knows you need to spread out your assets into different markets and different asset mixes. If you go all in you're raising your risk exponentially.

wise decision,what can we say more about it
especially seeing ETH grow 100% in just a month's time
from 120$ to 250$ and more,but if Novovitz kept 50% of his funds in bitcoin and ether
he would have ,at least,doubled his assets