Novogratz Says Crypto Will Be Biggest Bubble of Our Lifetime

LAGOS (Capital Markets in Africa) – One of the biggest bitcoin bulls on Wall Street says cryptocurrencies are in a massive bubble. He’s still starting a $500 million fund to invest in them.

“This is a bubble and there is a lot of froth. This is going to be the biggest bubble of our lifetimes,” hedge fund manager Mike Novogratz said at a cryptocurrency conference Tuesday in New York.

Novogratz, who’s says he began investing in bitcoin when it was at $90, is starting the crypto fund because of the potential for the technology to eventually transform financial markets. Bitcoin topped a record $9,900 earlier Tuesday in Bloomberg composite pricing.

“Bubbles start around ideas that are often right,” he said. “I don’t think many of these are currencies, even bitcoin,” he said at the Coindesk-sponsored conference. “Bitcoin will win battle for store of value.”

Novogratz’s Galaxy Digital Assets Fund would be the biggest of its kind and signal a growing acceptance of cryptocurrencies as legitimate investments. For Novogratz, the fund marks a comeback to professional money management after humbling losses at Fortress Investment Group LLC and almost two years of self-imposed exile from Wall Street.

Read more: Bitcoin’s Most-Famous Lovers and Haters Speak Out on the Rally

“Not everything can win, now it feels like it can because so much money is pouring in,” Novogratz said. “Litecoin doesn’t add enough new stuff to replace bitcoin. it won’t survive as decentralized way to store wealth.”

Source: Bloomberg Business News