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Mike Novogratz: Not Investing in Bitcoin is “Almost Irresponsible” crypto cryptocurrency

Mike Novogratz: Not Investing in Bitcoin is “Almost Irresponsible”

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Michael Novogratz, the billionaire who has always been a huge advocate for Bitcoin, recently said that all investors should allocate at least 1% – 2% of their portfolio in cryptocurrencies, and those who don’t are deemed “almost irresponsible” for not doing so.

Crypto is the Future of Money

Once a partner at Goldman Sachs Group Inc., Novogratz has reinvented himself as a cryptocurrency investor and a champion for blockchain technology ever since his departure from the investment bank. Three months ago, Novogratz, who was the head of Galaxy Investment Partners, announced that he has raised over $250 million for a cryptocurrency investment venture called Galaxy Digital. Vowing to make it the “Goldman Sachs of Crypto”, Novogratz’s New York-based firm plans to trade and manage cryptocurrency assets as well as offer consultancy services to blockchain startups.

On Wednesday, in a partnership with Bloomberg, Novogratz’s Galaxy Digital Capital Management launched the Bloomberg Galaxy Crypto Index, an index that tracks some of the major cryptocurrencies, including Bitcoin and Ethereum.

In an interview with CNN, Novogratz explained the role cryptocurrencies will play in shaping our future, and emphasized how important it is for investors to delegate a portion of their portfolio to these digital assets. He claimed that investing in cryptocurrency is “not necessarily because of all the gains they’re going to make,” but because “these [blockchain] technologies in two to four years are going to give every vertical a challenge.”

“I’m not saying that the decentralized version of Uber will be Uber,” he added. “But it’s going to be a challenge, and it’s got a real value proposition.”

Traditional Financial Institutions Starting to Get Involved

Novogratz’s bullish claims resonate with the course of action that most traditional financial institutions are beginning to take recently. Two weeks ago, multi-trillion dollar stock exchange Nasdaq announced that they will be launching a cryptocurrency exchange after striking a deal with Gemini Trust – one of the world’s largest crypto exchanges.

At the beginning of the year, global banking behemoth Goldman Sachs also declared that they will be setting up a trading desk dedicated to Bitcoin and other cryptocurrencies, with an estimated launch date of June 2018.

Of course, not everyone agrees with the wonders of Bitcoin. Berkshire Hathaway CEO Warren Buffet has repeatedly criticized Bitcoin, even going as far as to calling it “rat poison squared”. However, Novogratz dismissed Buffet’s criticisms with a shrug.

“In a lot of ways, this is a Millennial-led revolution … what I’ve found is guys with gray hair [are] much more skeptical.”

Featured Image Source: CB Insights

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