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Mike Novogratz believes that the world would transform from the era of bank accounts to crypto wallets. With the increasing use of digital assets, financial institutions would be forced to integrate cryptocurrencies.
The founder and CEO of Galaxy Digital Mike Novogratz has revealed that 50% of his net worth is in cryptocurrency. The CEO further encouraged investors to invest up to 5% of their portfolio into Bitcoin.
Novogratz revealed his crypto investment while speaking in an interview with CNN’s Julia Chatterley on the 8th of December.
Mike Novogratz and His Net Worth
Also, Novogratz “changed his tune” on his previous recommendations on how much investors should invest in Bitcoin. At first, Novogratz had advised investors to devote about 1% of their resources into Bitcoin and other altcoins. About a month ago, the CEO upped his recommendation, encouraging investors to invest up to 3% of their net worth into Bitcoin and HODL for five years. At the time Novogratz made the statement in November, BTC was trading over $19,000.
Now, the CEO and crypto investor is further encouraging investors to invest 5% of their resources into BTC:
“I think a new investor could put 5% into Bitcoin. Bitcoin’s not going back to zero… It could certainly trade back to $14,000 – you could lose 30-40%, but you’re not losing 80-90% of your money.”
Speaking on the significant increase and global adoption of Bitcoin by both individual and institutional investors, Novogratz said that the king coin’s “adoption is accelerating in a giant way.” Novogratz also said that everyone now sees gold as digital gold and a hedge against fiat currency.
Stating that the world is going digital, the CEO added:
“We’re at the beginning innings of rebuilding the infrastructure that American & global business will be done on in the future.”
Furthermore, Novogratz believes that the world would transform from the era of bank accounts to crypto wallets. With the increasing use of digital assets, he said, financial institutions would be forced to integrate cryptocurrencies.
Bitcoin Institutional Investors
Since the beginning of 2020, the crypto space has recorded significant gains, with Bitcoin marking new highs. As a result of the constant increases, several analysts became more bullish on crypto, especially Bitcoin, as more institutions acquire digital assets.
In August, business intelligence company MicroStrategy Inc (NASDAQ: MSTR) announced the acquisition of 21,454 BTC. At the time of purchase, the BTC was worth $250 million. In the announcement, the company also revealed that it was adopting Bitcoin as its primary treasury reserve asset. In addition, the company’s CEO Michael Saylor acknowledged BTC as a “dependable store of value and an attractive investment with more long-term appreciation potential than holding cash.”
About a month after, the company bought an additional BTC worth $175 million.
On the 4th of December, Saylor announced that MicroStrategy had acquired more BTC to the $175 million Bitcoin bought in September. The CEO said the company had purchased about 2,574 BTC for $50 million in cash. In total, the company now holds approximately 40,824 BTC.
Apart from MicroStrategy, Grayscale Investments is also an institutional investor in BTC.
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Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
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