Hedge Fund Legend Who Called Bitcoin Biggest Bubble Ever, Just Bought $20 million of BTC

11/14/2017 - 15:30 UTC
Hedge Fund Legend Who Called Bitcoin Biggest Bubble Ever, Just Bought $20 million of BTC

Legendary trader, Michael Novogratz, is very well-known for his belief that Bitcoin is a bubble. At the same moment, though, he buys bitcoins like mad and regrets only for not buying earlier.

Mike Novogratz, the former macro hedge fund manager at Fortress Investment Group, is now CEO of Galaxy Investment Partners, a firm that bets on cryptocurrencies and related businesses.  Last June, he said that "cryptocurrencies were likely the biggest bubble of his lifetime," adding though he had 20% of his net worth in various coins including Bitcoin and Ethereum.

In October, while the BTC price was skyrocketing, he was quoted on CNBC saying "he believes the value of a bitcoin will reach $10,000 in six to 10 months". He is not the only bold investor to predict BTC at such high prices. Last October, Ronnie Moas predicted Bitcoin at 11,000 dollars in 2018.

Big Money Coming to Bitcoin?

Speaking at the Reuters Global 2018 Investment Outlook Summit in New York, Novogratz said on Monday that "mainstream institutional investors are about six to eight months from adopting bitcoin." He believes that major financial firms will soon start to offer bitcoin or similar cryptocurrency-related products as an investment option.

“When it’s that easy, the price of bitcoin or ethereum is going to go much higher. And that is a lot closer than people think"

As reported earlier today, Novogratz bought $15 to $20 million worth of Bitcoin over the last weekend in the recent BTC pullback. Novo -as known to his friends- revealed that he was the mysterious buyer that stepped in as BTC price fell below $6,000.

Is It Bitcoin A Bubble Or Not?

Echoing other commenters like, Credit Suisse CEO who called Bitcoin the "very definition of a bubble", Novogratz also believes Bitcoin is a bubble, but he thinks this bitcoin-mania is justified. According to him, Bitcoin represents a profound technological advancement that can fundamentally change the way we transact value.

Powerful technologies can be bubbles at their first stages, Novogratz explains.  “Remember, bubbles happen around things that fundamentally change the way we live,” he said and gave an example: “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.

Read more: Why Bitcoin Is Here To Stay And Not A Bubble

What do you think? Is Bitcoin a Bubble or not? Will it hit $10,000 as Novogratz believes?



Disclaimer: This article should not be taken as, and is not intended to provide, investment advice on Bitcoin, Cryptocurrencies or finance in general.