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Billionaire investor Mike Novogratz has said that he is holding ten percent of his net worth in digital currencies such as Bitcoin and Ether.
Speaking at a recent forum held at the Harvard Business School Club of New York, Novogratz, who is a former hedge fund manager at Fortress Investment Group and a Goldman Sachs partner, made the Forbes billionaire list in 2008.
According to a report from CNN Money, during his talk, Novogratz declined to disclose how much his net worth was, but said that investing in the digital currency space, was:
The best investment of my life.
The Rise and Fall of Bitcoin
Just this year alone, bitcoin has had a rollercoaster ride that has seen its price rise to a high of $1,350 at the beginning of March and then drop below $1,000 after the SEC’s ETF rejection before steadily picking itself up again to trade around the $1,200 today. Certainly not an investment choice for the fainted hearted, the digital currency space is surpassing most people’s expectations and appears to be continuing its upward trend.
So much so, that Novogratz is of the opinion that the price of Bitcoin could increase to as high as $2,000. He’s not the only one, though, who is projecting high prices for the currency. Bobby Lee, BTCC’s co-founder and CEO, predicted late February that Bitcoin could increase to between $5,000 and $11,000 by 2020, after the block reward halving.
However, while Novogratz seems happy with his investments in Bitcoin, he added during his talk that there could be ‘a bubble’ in digital currencies. One way that he is avoiding any potential pitfalls is by also investing in the second largest digital currency, Ether.
When the billionaire initially invested in Ethereum, it was worth around $1; today, its price has risen to just under $50.
Interest in Ether Piques
When Novogratz was still at Fortress Investment Group, he helped the company invest in bitcoin.
However, since leaving at the end of 2015, the former hedge fund manager has been showing a keen interest in Bitcoin’s rival cryptocurrency, Ether, which has attracted a large following who are keen for its value to rise.
For those who can, it appears as though investing in the digital currency space is becoming a viable method to make some money.
How long it remains is to be seen, but while it’s important to know when to invest in the currency, it’s just as important to know when to sell too.
Featured image from YouTube/WallStreetWeek.