Billionaire Micheal Novogratz Bullish On 2019 Bitcoin Despite Enduring Millions In Loses in 2018
Despite Enduring Millions In Loses, Billionaire Micheal Novograt Bullish On Cryptos
Losing millions to the recent bear market hasn’t shaken billionaire investor Michael Novograt’s trust in cryptocurrencies. As the CEO of Galaxy Digital Holdings he said that there are plenty of reasons to be depressed because of the horrible bear market in tokens.
However, Novograt is optimistic that in 2019 there will be widespread adoption of cryptocurrencies. He thinks that many low value items like the e-gaming space should be the early adopters of blockchain technology.
Up until September his trading firm had recorded losses of $131 million on cryptocurrencies. Most of the losses were made because of the firm losing money in Ethereum, Bitcoin and XRP. Galaxy Digital alone lost about $41 million just in the third quarter of 2018.
Novograt thinks that these losses are a small price to pay for the adoption progress bitcoin and other cryptocurrencies are making. He thinks that once their is widespread adoption his investments will pay off. Although their is a lot of regulatory fight ahead. The Securities and Exchange Commission (SEC)'s indecisiveness about Bitcoin ETF has particularly stuck a nerve with him. He said:
“Part of the sell-off is because, I think, the SEC got tough on a few fraudulent ICOs. And not just were tough on them — they mentioned personal investors can go for reparations in most cases. And people got very nervous.”
SEC has been cracking down on ICO frauds and promotions recently which Novograt thinks is a good thing.
“As the rules get clearer with the SEC and other regulatory bodies around the world, it’s easier, quite frankly, to build a business and it’s easier for institutions to feel comfortable participating. We are reaching out to regulators hoping to help structure some of the rules,” he added.
His firm has endured about 15% of their damages from their ICO business. He had thought that regulatory structure and technical infrastructure would have been easier to streamline. This overestimation had been a major factor in his loses and the same stands for many investors in this space.