Michael Novogratz, a prominent hedge fund manager who used to work at Fortress, stated in an interview with CNBC that he feels the bitcoin could reach well beyond the $10,000 value that it has attained. He argues that the bitcoin could be worth $40,000 before the end of 2018. He is optimistic enough about the bitcoin to where he is investing a massive amount of money into this currency. But he does not want people to assume they can put in as much money into the bitcoin as what he can.
This all comes just a few months after Novogratz had argued that the bitcoin would reach the $10,000 threshold very soon. On October 10, he said to CNBC that it would reach that level in six months.
The argument that Novogratz has about the bitcoin growing in value entails the cryptocurrency becoming exceptionally popular around many parts of the world. He states that there is a true sense of interest among parties from all corners of the world in terms of who wants to invest in the currency.
This can be noticed through the Japanese yen being the most prominent currency being utilized in the bitcoin trading process. Nearly two-thirds of the bitcoin trades on the market entail the yen. The United States dollar accounts for 21 percent of sales while the South Korean won goes towards 9 percent.
Also, Novogratz argues that the nonrenewable nature of the bitcoin is a vital part of what is causing its value to increase. By being a currency that can only be mined so many times, it could be easier for the bitcoin to grow in value as more people struggle to try and find the currency for themselves.
A New Endeavor
Novogratz is also planning a $500 million fund through his new firm. This fund will be dedicated to digital assets like the bitcoin. This will be operated through Galaxy Investment Partners, the new firm that he has established.
Novogratz has already been focusing heavily on the bitcoin as well as Ethereum. He states in the CNBC interview that at least 20 percent of his portfolio is dedicated to the bitcoin. He even bought about $15 million worth of the currency in mid-November as the bitcoin experienced a sudden decline in its value by around 20 percent.
Even with this, he feels that investors should not put more than 3 percent of their portfolios into cryptocurrencies. He does state that investors with more money can put up to 10 percent of those portfolios into such currencies.
Ethereum Also Growing
Michael Novogratz also says that Ethereum, the second most popular cryptocurrency, will continue to grow in value. The currency has been around the $500 mark in recent time and is expected to keep on increasing in its value. Novogratz states that Ethereum could be worth close to three times the value it is at before 2018 ends.
With the growth of the bitcoin and Ethereum alike, Novogratz states that the total market cap of all cryptocurrencies could get to around $2 trillion before 2018 ends. The current market cap is at $300 billion.