Billionaire Mike Novogratz says he has 10% of his money in Bitcoin and Ether

[Hydrogen]

Billionaire investor Mike Novogratz is betting big on digital currencies like Bitcoin and Ether.

"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.

Bitcoin was worth under $500 a year ago. Today the digital currency trades at over $1,200. Back in 2013, Novogratz predicted Bitcoin's value would soar. He remembers people laughing at him at the time.

Since then, Bitcoin's price has been on a wild run. It surged to nearly $1,000 in late 2013 and then fell to under $250 in 2015. It started to fly again last year, around the time of the Brexit vote. It surpassed $1,000 in January of this year again and has kept climbing.
Now Novogratz is saying Bitcoin will go to $2,000.

But he also warned the Harvard Business School Club crowd that there will "likely be a bubble" in digital currencies. 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.

For example, Novogratz was also an early investor in Ether. It's another digital currency that has quickly emerged as the No. 2 rival to Bitcoin. Novogratz says he bought Ether when it was trading for about $1. Today it's worth over $48.

Novogratz met Vitalik Buterin, the young Russian brainchild behind Ether at a dinner party at a prominent CEO's home. He recalls that Buterin, then 21, showed up late, which struck him as shocking -- and a bit ballsy. He figured it was worth paying attention to Buterin.

Ether is a currency with a "smart contract" function that gives users additional security and abilities to transfer information in addition to monetary value.
We're witnessing the "3rd inning" of this digital asset revolution, Novogratz predicts. He's not exactly sure how it will play out, but he plans to continue investing in digital currencies and Blockchain, the revolutionary technology behind the scenes that makes Bitcoin work.

Blockchain is literally a digital ledger to record and track transactions. What makes it so technologically advanced is that multiple companies or parties can access the Blockchain and see the history of what happened to an asset.

Novogratz has emerged as one of the biggest Wall Street cheerleaders of Blockchain, but his bets haven't always gone so well. He exited Fortress in 2015 after the company shut down his Marco Fund for poor performance. It lost around 20% in its final year after his investments in emerging markets, especially Brazil, tanked.

"We have had an extremely challenging two years, and I do not believe the current environment is conducive to achieving our best results," Novogratz said at the time.

http://money.cnn.com/2017/04/20/investing/mike-novogratz-bets-big-on-bitcoin-ether-blockchain/index.html

That's one confirmed billionaire betting big on crypto.

I wonder how many others there are who aren't publicly invested yet have a lot riding on btc.

[1715189627]

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[1715189627]

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[btcdevil]

If i am not wrong their are so many rich peoples who have invested in Bitcoin and other altcoins seeing their potential but due to government issues they cannot disclose it openly.

In this comment it is also given a hint that which ever investment this rich guy has done have gone in loss so it may also be that as he has entered in the bitcoin and ETH market so we can see some selling pressure and down grade of the price of both coins

[bartolo]

Surely there will be more millionaires investing in bitcoin because they see a chance to make money. What happens is that these people usually do not go around saying where they have invested nor how much.

[Sempiternals]

Novogratz has risen as one of the greatest Wall Street team promoters of Blockchain, yet his wagers haven't generally gone so well. He left Fortress in 2015 after the organization close down his Marco Fund for poor execution. It lost around 20% in its last year after his interests in developing markets, particularly Brazil, failed.

[Gleb Gamow]

Mike Novogratz has 10% of his net worth invested in Bitcoin and Ethereum.

"Let's calculate, mmmkay."

A = Mike Novogratz's net worth at $1B+

$1B+ X .10 = $100M+

B = Current market cap of ALL altcoins = $29.5M+

A > B by a magnitude of? (you do the math)

Q.E.D.

[aardvark15]

I wonder how much of that 10% is in Bitcoin and how much is in Etherium. He also said to diversify but only talked about those 2 coins so I wonder if he will buy other altcoins as well.

[aardvark15]

Mike Novogratz has 10% of his net worth invested in Bitcoin and Ethereum.

"Let's calculate, mmmkay."

A = Mike Novogratz's net worth at $1B+

$1B+ X .10 = $100M+

B = Current market cap of ALL altcoins = $29.5M+

A > B by a magnitude of? (you do the math)

Q.E.D.

He declined to say how much he is actually worth, so maybe you just figured out that he's not really a billionaire. Or he could be exaggerating the percentage of his net worth that is in cryptocurrencies.

[Iranus]

Mike Novogratz has 10% of his net worth invested in Bitcoin and Ethereum.

"Let's calculate, mmmkay."

A = Mike Novogratz's net worth at $1B+

$1B+ X .10 = $100M+

B = Current market cap of ALL altcoins = $29.5M+

A > B by a magnitude of? (you do the math)

Q.E.D.

Oh no, someone can't read numbers right.  I think you'll find it's 29.5 billion, not 29.5 million.

Bitcoin's market cap being worth less than 100 million dollars would mean it was practically worthless on a global level, which it's not.  You should check your own maths very carefully before you get too arrogant.

[scox]

~snip

Just to add on the previous remarks above...

I feel none have understood the meaning of "being a billionaire" or Net Worth.
Net worth is the cumulative value of all your possessions, houses, investments or stocks...

Liquidity is a radically different concept... billionaires, as very few at all, have anything more than a few million in the bank. No one keeps huge amounts of cash un-invested.

When the guy says "10% of his money is in bitcoin" he means 10% of his liquidity is in bitcoin, not 10% of his worth is constituted by his bitcoin possessions' value

[European Central Bank]

i admire the balls, but 10% is a stupid amount if the sum is high. he'll be stuck with paper profits if it really goes high.

[JanpriX]

Well, somehow, this doesn't surprise me at all. Bitcoin proved from time to time that it is one of the best performing currency in the world especially in the last 3 years. From this information, people who have money just sitting in their own bank accounts could easily invest in Bitcoin. This would provide them more money in the long run. And I think they are doing the right thing. Bitcoin is a very good "investment" for the future.

[Haladay]

If Buffet looked at investing in bitcoin and altcoins, the market cap would boom around 10% instantly.

[European Central Bank]

If Buffet looked at investing in bitcoin and altcoins, the market cap would boom around 10% instantly.

the reason people like that are richer than the rest of us is that they don't telegraph their moves. and if they actually make moves, we don't hear about it until years afterwards. i think we might be surprised who has a bitcoin stash.

[Haladay]

If Buffet looked at investing in bitcoin and altcoins, the market cap would boom around 10% instantly.

the reason people like that are richer than the rest of us is that they don't telegraph their moves. and if they actually make moves, we don't hear about it until years afterwards. i think we might be surprised who has a bitcoin stash.

That's a good point of view! I strongly agree with you. We would hear the news 1 or 2 years after a celebrity invested huge amount of Money in coins.

[uneng]

For a billionaire, if he is really one, it's a good experience to adopt crypto currencies and see what happens. Even the currencies lose price he won't suffer, as he has much more money to recover his losses.
But if I were he I would invest majority in bitcoin, investing in altcoins ony few percents like 1% by 3%.

[LittleBitFunny]

For a billionaire, if he is really one, it's a good experience to adopt crypto currencies and see what happens. Even the currencies lose price he won't suffer, as he has much more money to recover his losses.
But if I were he I would invest majority in bitcoin, investing in altcoins ony few percents like 1% by 3%.

It just said he invested in Ethereum when the price was $1.  That would be an increase of 5000%, not 1% or 3%.

Altcoins can be extremely profitable and raise by extremely high amounts in certain circumstances and with certain coins.  Clearly Novogratz is good enough at spotting major coins with future potential.

[European Central Bank]

For a billionaire, if he is really one, it's a good experience to adopt crypto currencies and see what happens.

most of these billionaires, especially tech ones, will only be billionaires on paper. most of their 'wealth' will be tied up in stock and unicorns. funnily enough if they tried to turn it into hard cash they'd destroy the price just the same as crypto.

[Layla Mckenzie]

I guess it's a good thing to know that a billionaire trust his money to btc, and invest on it. It makes feel more sure about it, and use it even more

[aardvark15]

~snip

Just to add on the previous remarks above...

I feel none have understood the meaning of "being a billionaire" or Net Worth.
Net worth is the cumulative value of all your possessions, houses, investments or stocks...

Liquidity is a radically different concept... billionaires, as very few at all, have anything more than a few million in the bank. No one keeps huge amounts of cash un-invested.

When the guy says "10% of his money is in bitcoin" he means 10% of his liquidity is in bitcoin, not 10% of his worth is constituted by his bitcoin possessions' value

He actually said "Ten percent of my net worth is in this space". That's a huge amount of money if he has $1 billion or more. Who knows if he is telling the truth though.

[Gleb Gamow]

Mike Novogratz has 10% of his net worth invested in Bitcoin and Ethereum.

"Let's calculate, mmmkay."

A = Mike Novogratz's net worth at $1B+

$1B+ X .10 = $100M+

B = Current market cap of ALL altcoins = $29.5M+

A > B by a magnitude of? (you do the math)

Q.E.D.

Oh no, someone can't read numbers right.  I think you'll find it's 29.5 billion, not 29.5 million.

Bitcoin's market cap being worth less than 100 million dollars would mean it was practically worthless on a global level, which it's not.  You should check your own maths very carefully before you get too arrogant.

Dude, I did check my math prior to publishing. I just didn't double- or triple-check the math is all. I'm such a Lugan!