Mike Novagratz on Bitcoin and Ethereum (2017)
I recently watched an excellent Bloomberg interview segment with Mike Novogratz, an ex-hedgie at Fortress who now runs a new fund he founded called Galaxy Investment Partners, which aims to focus on the digital asset space. They don’t have an official website yet, but I’ll update this post when they’re live. Novogratz is one of the most bullish institutional investors I’ve seen in the crypto-space and has really been making an absolute killing since his departure from Fortress circa 2015. He had some really interesting thought flow that I want to discuss below.
https://www.youtube.com/watch?v=DozrRY2NENU
- Bitcoin was a perfect asset to see a speculative bubble in. It’s price would appreciate because there’s a lot of libertarians and anti-government people out there, plus China was showing signs on interest in the space.
- Sometimes, you need to listen to your instincts. When you know something’s good, buy something!
- Bitcoin was a revolution in cryptography and economics (can you create a fixed supply currency?)
- Ethereum is like an architecture to build on top of akin to a public utility
- The real value of cryptocurrency is the decentralization of capital
- Don’t break the rules, especially if you get rich (e.g. insider trading, tax evasion)
- Cryptocurrency is a market just like any other market, fueled by fear and greed.
- There’s smart money moving into the space to bring credibility and validation
- Blockchain technology will be ubiquitous in 10-15 years
- In a decentralized world, the middle-man will be cut out
- Learn from mistakes, rebuild yourself, and start over
- Bitcoin’s use case is digital gold, its a store of value
- You don’t trade gold or blue chips (e.g. Alphabet) frequently
- Bitcoin and other cypos will be the largest bubble of our lifetimes
- Bubbles occur around things that fundamentally change the way we live (e.g. railroads, internet)
- Everyone should have some crypto-exposure, this trend will not go away anytime soon
- Novogratz on Life: Very few people win every battle, it’s how you bounce back that makes the journey exciting