Bitcoin Forum

‘Almost Irresponsible’ to Not Invest in Bitcoin: Billionaire Mike Novogratz

Billionaire bitcoin bull Michael Novogratz, founder and CEO of Galaxy Digital Capital Management, says every investor should have 1% to 2% of their portfolio in cryptocurrency. Not to do so, he told CNN, is “almost irresponsible.”

https://www.ccn.com/almost-irresponsible-to-not-invest-in-bitcoin-billionaire-mike-novogratz/

1-2% of their portfolio?Wow,this is too risky.They should invest under 0,5%. ;D Just kidding.
I was going to retire with my bitcoin savings,but the BTC price is going down again and I'm so frustrated right now. :-\
What is irresponsible?Not investing in bitcoin or not investing in crypto?Again some naive jounalists don`t know the difference between btc and crypto.

I think even 1% or 2% can be too much for some people, but I'd say that everyone should invest as much as they can afford to lose in Bitcoin and maybe a few other coins, because the potential payoff can be huge in the long run. I think many investors have already taken this approach, but maybe they prefer to not talk about it for some reasons, like maybe they don't want to be judged by their Bitcoin-hating colleagues.

If you are a billionaire, I agree that even 1% is too risky. But ordinary people should invest, in my opinion, much more than 1% and buy bitcoin on monthly basis, regardless of the market price.

I can't see how investing 1% or 2% of what they have can be too much for some people. However poor they can be, we are talking about percentage here, right? Percentage is a proportion or share in relation to a whole, and the poorer person is, the less money he/she is investing when investing 1% or 2%. It can't be be too much for "some people", it's either too much for everyone or not too much, regardless of the financial situation of an individual.

Novogratz has invested 10% of his net worth in cryptocurrencies himself and I agree with him because if you lose 10% of what you have it's not the end of the world.

No one should risk more than they can afford to lose, but if you are afraid of risking 1% or 2% of what you have how can you live in this world?

If I'm not mistaken, the same argument was used to urge citizens in the past to back government backed bonds, or even war bonds in the times of conflict. But a lot of people ended up losing on those bonds, simply by playing responsible roles.

I think it is irresponsible to be telling people what to do. I never tell friends to invest in Bitcoin even if I believe in it. Shouldn't play on this FOMO front.

1-2% is quite a fair and managable risk exposure in general terms, but I personally find it to be on the far lower side, but that may be because I am a Bitcoin enthusiast and firmly believe in its potential.

Don't forget that when hedge funds and other firms start allocating 2% of their portfolio to Bitcoin, it means billions in capital that will flow into Bitcoin. If we also take into consideration that the availability of circulating Bitcoins has only gone down throughout the years, the market is very likely going to make another 'easy' 500-1000% jump in the coming few years.

For professional parties that shift is very important because of how their logic works. Bitcoin usage and interest by institutions means legitimacy for them, and eventually when they go full nuts I wouldn't be surprised to find out that the percentages of their portfolios might jump up to 10% as minimum.

These capital shifts will be the real deal in the coming years, even if it 'only' concerns a few %;

Gold > Bitcoin.
Stocks > Bitcoin.
Bonds > Bitcoin.
Offshore banking capital > Bitcoin.

Bitcoin is and will remain more rewarding than anything else. Capital shift is imminent.

Well, if you look at the cost of living and look at risk as the amount of capital you are willing/comfortably able to lose, being a billionaire increases the risk threshold quite a bit.

Of course they ended up losing, it's like buying the government's garbage. Bitcoin is backed by nothing but its decentralized network preventing dirty governments from messing around with people. It's exactly the bit of freedom people always wanted. Gold was an effective way to obtain a decentralized form of financial freedom, but it doesn't offer any convenience, where right now Bitcoin is the digital equivalent of gold filling up that what gold can't provide. Bitcoin can be used as money due to its digital form and how divisible it is. It doesn't mean gold will become redundant, but gold will end up with a more than capable competitor....