Ex-fund manager Michael Novogratz has said in an interview that he believes the value of a bitcoin will reach $10,000 in six to 10 months.
Putting his belief into practise, Novogratz, a former principal at investment firm Fortress and an ex-partner at Goldman Sachs, said he is leaving retirement to start a $500 million fund for cryptocurrencies, token sales and related startups.
Named the Galaxy Digital Asset fund, Novogratz indicated he has committed $150 million of his own money to the venture, and aims to raise the rest by January, CNBC reports. The remaining funds will be raised by wealthy individuals and other hedge fund managers.
Rather than focus on a narrow range of cryptocurrencies, the billionaire intends to invest indiscriminately across the industry, or “play the whole ecosystem,” he explained.
In an interview with CNBC’s Fast Money, Novogratz called the emerging landscape a “revolution,” stating:
“I never thought I’d come out of retirement but the space is so exciting right now I decided to build a business, hire a whole bunch of smart guys, and we’re gonna to raise a fund … and hopefully take advantage of what I see as a revolution, actually. A decentralised revolution.”
As a store of value, Novogratz likened bitcoin to digital gold, and said the technology is beginning to make “more and more sense” as we move increasingly into the digital.
Novogratz continued to say that, while bitcoin is a bubble, the mania is justified, because it is a technological advancement that promises to fundamentally alter our lives. Bitcoin is set to become “the biggest bubble of our time,” he added, and could reach $10,000 very soon due to fast-building interest.
“I can hear the herd coming” Novogratz said.
Michael Novogratz image via CoinDesk archives