There are no shortage of opinions when it comes to bitcoin. Particularly amongst financial executives and senior personnel at investment banks, everyone has their view on how the price of bitcoin will develop over the near term.
Recently, JP Morgan executive Jamie Dimon sent shockwaves through the market, after sounding downbeat about the prospects of bitcoin long-term. But his personal opinion is not shared by some of his contemporaries, most notably billionaire fund manager Mike Novogratz.
A one-time partner in Goldman Sachs, Novogratz has predicted that bitcoin prices will rise to $10,000 within six to 10 months, and in any event within the next year – a price point that would stand at roughly double the current all-time high.
Now formally retired, Novogratz has elected to put his money where his mouth is, and is in the process of establishing a new $500 million investment fund to specifically target bitcoin and cryptocurrency investments.
Known as the Galaxy Digital Asset Fund, the project has seen Novogratz commit $150 million of his personal money, with plans to raise the remainder from investors ahead of January 2018.
But rather than restricting his investment to bitcoin, or to a handful of digital currencies, the fund will take positions across the ‘whole ecosystem’, including token issues, and by investing in bitcoin and blockchain startups.
Describing the revolutionary potential of the emerging cryptocurrency scene, Novogratz said he had no option but to back what he sees as the strong potential for growth in this space.
“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 raise a fund … and hopefully take advantage of what I see as a revolution, actually. A decentralised revolution.”
Likening bitcoin to digital gold, Novogratz said he felt the technology supporting bitcoin was becoming increasingly relevant, as systems increasingly switch wholesale to the digital. Describing bitcoin as ‘the biggest bubble of our lives’, his comments have been some of the most bullish to emerge from investment circles in recent times.
At the time of writing, bitcoin prices had breached $5,100, with analysts expecting further price rises in the short-term.