Mike Novogratz, a billionaire businessman, stated on Tuesday (December 8) why he thinks that institutional participation in Bitcoin can only grow and how much crypto exposure potential entrants should have.
Former hedge fund manager Novogratz is the founder and CEO of Galaxy Digital.
Galaxy Digital is known as an innovator in the digital commodity, cryptocurrency, and blockchain technology industry for diversified financial services and investment management.
Novogratz’s Remarks to Current and Future Bitcoin Holders
His remarks came earlier today during an interview with CNN anchor Julia Chatterley.
"You're going to see every single financial institution forced into this space."
"We're at the beginning innings of rebuilding the infrastructure that American & global business will be done on in the future." pic.twitter.com/b0hdiQwrrG
— Julia Chatterley (@jchatterleyCNN) December 8, 2020
Chatterley first questioned Novogratz why, in the last few years, Bitcoin has moved from a “frontier investment” to a macro commodity.
Everyone is now looking at Bitcoin as a form of digital gold, or as a hedge against the debasement of fiat currency. The institutionalization of getting good custody, of getting people comfortable that they understood it, that it was safe, happened over the last few years, and now it’s arrived, and we’ve seen nothing but more and more accounts trying to get involved.
Everyone now sees Bitcoin as a type of digital cash, or as a protection against fiat currency deflation.
With regards to Bitcoin’s growth as an investment in the past few years, Novogratz noted:
Every single crypto business like mine is working at breakneck speed because just onboarding all the new accounts from high net worth to institutions to pension funds to endowments.
He also spoke about how he sees mainstream cryptography:
In addition to Bitcoin (which he sees as a great value store and hence a very stable investment for people’), Novogratz also invested in Ethereum in the cyptoasset space:
I think Ethereum still has more of a venture flair to it but it’s an investment we like.
He likes the decentralized finance (DeFi) industry as well:
“This is much more for the experts, but I think in five or ten years, really the revolution is going to happen by taking the blockchain and bringing it to finance, and so we’re investing a lot of wonderful, you know, smaller projects.”
In a few years every bank will be involved in crypto. https://t.co/Bhyoym34i0
— Mike Novogratz (@novogratz) December 8, 2020
Novogratz urges fresh investors to put 5 percent of their net worth into Bitcoin as Bitcoin is “not going back to zero” even if it may fall to as low as $13,000.
“Total crypto exposure is probably 50 percent as a proportion of my net worth.”
Who is Mike Novogratz?
Mike Novogratz, formerly of the Fortress Investment Group investment company, is a retired hedge fund trader. He is already Galaxy Venture Partners’ CEO, focused on developments in cryptocurrencies such as Bitcoin and Ethereum.
Prior to the financial crash of 2007-2008, he was ranked a billionaire by Forbes in 2007 and later recovered his wealth after investing in cryptocurrency.