After famously predicting the bitcoin bull run towards the end of 2017, Mike Novogratz has become “the ugly face” of the cryptocurrency industry. He also spoke about losing money during the bear market, the ICO market and the future of bitcoin.
The former hedge fund manager and Goldman Sachs Group Inc. partner gave an interview to Bloomberg where he described his hero to zero status in the crypto space. He spoke about losing money during the bear market, the ICO market and the future of bitcoin.
Predicting The Crypto Bubble
Mike Novogratz, who recently started Galaxy Digital Holdings Ltd, a cryptocurrency merchant bank, had accurately predicted that bitcoin was going to reach a high of $10,000 and further in 2017. That was right after Jamie Dimon, CEO of JPMorgan Chase says bitcoin “is a fraud.” However, in 2018, his company has reportedly lost over $136 million in trading bitcoin and other cryptocurrencies.
“For a while, I had a series of tremendously good calls. I was the pretty face of crypto. Now I’m the ugly face,” he said. He had made substantial losses from investing in bitcoin and ether earlier in the year.
Mike Novogratz believes the ICO market is non-existent at the moment. “The ICO market is pretty much dead right now.” There have been lots of fraud and hype, which has made many lose their money and also given regulators the need to prosecute some them.
The Securities and Exchange Commission (SEC) announced last month that it filed civil penalties against crypto founders who failed to register new coin offerings. The SEC said it settled separate cases with start-ups companies Airfox and Paragon, which raised more than $10 million each in initial coin offerings that weren’t registered.
But there new territories opening up in the tokens market. Mike Novogratz said markets for security tokens are becoming favorable, but that we should not expect them to give as much crazy returns like what we have experienced before in the crypto market.
Future of Bitcoin
“I do believe Bitcoin is going to be digital gold. That means it’s the only one of the coins out there that gets to be a legal pyramid scheme,” Mike says concerning how bitcoin would evolve in the coming years.
He feels the first real use case of blockchain will be in the online virtual world, giving the example of Second Life, a virtual game that has approximately one million regular users.
People think I’m crazy when I say that, but Second Life does $500 million a year of GDP, real money traded back and forth in a virtual world with old technology. That’ll be the first use case where blockchain really works.
Also, they are concern about the current stage of the crypto market. The experience hedge fund manager says this is the pessimistic stage where fear rules and people scare that bitcoin might go down to zero. However, he concludes that bitcoin is “not going to zero. We’re at the methadone clinic.”
You can submit your latest Press release to boost your visitor count!