"It's A Decentralized Revolution" - Novogratz Sees Bitcoin At $10,000 Within A Year
Former Fortress Principal Michael Novogratz is not shy to share his opinion of virtual currencies. In June he explained "cryptocurrencies were likely the biggest bubble of his lifetime," but remained positively constructive with 20% of his net worth in various coins including Bitcoin and Ethereum as he made billions.
"Novo" - as his friends call him - has had a good run...
And now, in an interview with CNBC, the legendary trader has said that he believes the value of a bitcoin will reach $10,000 in six to 10 months.
As CoinDesk reports, putting his belief into practice, Novogratz, a former principal at investment firm Fortress and an ex-partner at Goldman Sachs, is starting a $500 million fund for cryptocurrencies, token sales and related startups.
Named the Galaxy Digital Asset fund, Novogratz has committed $150 million of his own money to the venture, and aims to raise the rest by January, CNBC reports. The remaining funds will be raised by wealthy individuals and other hedge fund managers.
Rather than focus on a narrow range of cryptocurrencies, the billionaire intends to invest indiscriminately across the industry, or "play the whole ecosystem," he explained.
In an interview with CNBC's Fast Money, Novogratz called the emerging landscape a "revolution," stating:
"I never thought I'd come out of retirement but the space is so exciting right now I decided to build a business, hire a whole bunch of smart guys, and we're gonna to raise a fund ... and hopefully take advantage of what I see as a revolution, actually. A decentralised revolution."
As a store of value, Novogratz likened bitcoin to digital gold, and said the technology is beginning to make "more and more sense" as we move increasingly into the digital.
Novogratz continued to say that, while bitcoin is a bubble, the mania is justified, because it is a technological advancement that promises to fundamentally alter our lives.
"I can hear the herd coming" Novogratz said.
And bubble or not, Novogratz concluded eloquently on the extreme nature of cryptocurrencies' potential...
“Remember, bubbles happen around things that fundamentally change the way we live,” he said.
“The railroad bubble. Railroads really fundamentally changed the way we lived. The internet bubble changed the way we live. When I look forward five, 10 years, the possibilities really get your animal spirits going.”
Bitcoin is set to become "the biggest bubble of our time," he added, and could reach $10,000 very soon due to fast-building interest.