“It is the best investment of my life” said billionaire Mike Novogratz at an April 19
Harvard Business School Club of NY event, where he announced that he holds ten
percent of his net worth in cryptocurrencies like Bitcoin and
Ethereum. Mike Novogratz was the Chief Investment Officer of the Fortress Macro
Fund, and a principal and member of the board of directors of Fortress
Investment Group LLC. Novogratz joined Fortress after a decade long tenure at
Goldman Sachs. He featured on the Forbes billionaire list in 2008.
While clearer revelations on his investment in cryptocurrencies have
come out now, his interest in cryptocurrencies isn’t new. He has been
advocating for Bitcoin as a good investment since 2013.
Bitcoin’s journey has been incredible. It started
trading at around $0.0007 per bitcoin in the beginning of 2009 and about two
years later, it hit parity with the dollar. While the year 2013 saw Bitcoin's
potential, it displayed its massive volatility. Even 2014 remained volatile but
it was milder. In 2015, there was recovery and gradual uptrend which continued
through 2016. The year 2017 has been exceptionally good for Bitcoin which
crossed the $1,300 mark for the first time. Mike Novogratz now predicts it to
go past $2,000. Mike Novogratz has invested in Ethereum (ETH) as well. He made his investment when
it was trading at $1. Today, its trading around
$69, and is the second largest cryptocurrency by market capitalization.
(Related reading, see: The 6 Most
Important Cryptocurrencies Other Than Bitcoin)
Mike Novogratz isn’t the only billionaire supporter
of Bitcoins and other cryptocurrencies. Patrick M. Byrne can
be called a bitcoin enthusiast. Back in 2014, when no major revenue generators
were accepting bitcoin as payment, he decided that Overstock.com, with $1.3
billion in revenue then, would accept bitcoins. Overstock became the first
large retailer to accept Bitcoin, going live in January of 2014. Then we have
Tim Draper, founder of Draper Associates – a
seed-stage venture capital firm – has been investing in Bitcoins (ad now Ether)
too. He ranked #98 on the 2014 Worth Magazine 100 Most Powerful People in
Finance. (Related reading, see: Overstock.com
Announces Rights Offering on Blockchain Platform)
The rising awareness, acceptance by governments and
rising adoption are supporting Bitcoin’s price movement which is motivating
people to invest. Bitcoin is emerging as a new asset class and given its low
correlation with traditional asset classes, it’s being dubbed as a perfect
diversifier for an investor’s portfolio. However, like any investment, there
are risks involved and investors must factor them in being leaping into the
world of cryptocurrencies
Read more: More Billionaires Are Buying Cryptocurrencies | Investopedia http://www.investopedia.com/news/more-billionaires-are-buying-cryptocurrencies/#ixzz4fvhGnkTg
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