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This Crypto King Calls Bitcoin “Largest Bubble Of Our Lifetimes”

This Crypto King Calls Bitcoin “Largest Bubble Of Our Lifetimes”

“This is going to be the largest bubble of our lifetimes,” says Mike Novogratz. “Prices are going to get way ahead of where they should be. You can make a whole lot of money on the way up, and we plan on it.”

Novogratz is a bitcoin king. The former macro manager is starting a $500 million hedge fund to invest in cryptocurrencies, initial coin offerings (ICOs), and related investments, according to Bloomberg.

At that size, his fund will be the biggest of its kind and serves as a sign that cryptocurrencies like bitcoin are being more widely accepted as legitimate investments.

But bitcoin is notoriously volatile, which makes investing in it difficult for individual investors. Earlier this month, bitcoin hit a record $5,000 before dropping 30% in two weeks on the news of the Chinese ban on ICOs and domestic trading of cryptocurrencies.

Because of this volatility, most large financial institutions have stayed out of the cryptocurrency market. JPMorgan Chase CEO Jamie Dimon echoed the dominant view on Wall Street when he called bitcoin a “fraud” and commented that he would sack anyone at his bank for trading it.

In fact, there are only two other hedge funds that have raised millions to invest in digital currencies. According to Bloomberg, Novogratz’s fund “will have a broader mandate, including market-making, arbitrage, stakes in internet coin offerings and venture capital-style investments in digital-asset development.”

“In a lot of ways, this is a market like any other market,” Novogratz said. “You see the psychology of fear and greed in the charts the same way you’d see it in charts of the Indonesian rupiah or dollar-yen or Treasuries. They’re exaggerated because of less liquidity and because you can’t get short.”

To read the full report, see Bloomberg.

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