Mike Novogratz Bullish About Crypto Investments Despite Bitcoin Implosion

Despite losing over $100 million in crypto investments, Billionaire investor, Mike Novogratz, is undeterred. The crypto poster boy maintains that the speculative mania that pushed Bitcoin to record highs is over. The crypto audience has matured according to the legendary trader who maintains there is still some opportunities worth pursuing in the sector.

Crypto Implosion

The sentiments come at a time of growing concerns about the sector at large. Bitcoin the flagship cryptocurrency has shed more than 80% in market value. A good chunk of cryptocurrencies, are down by double digits fuelling concerns about a potential bubble burst in the sector.

Novogratz attributes the recent implosion to pessimism and fear in the overall market. While most people expect Bitcoin to go back to zero, the legendary trader does not believe so. However, he admits that a plunge below the $6,200 mark came as a surprise. However, he attributes the slump to the Bitcoin Cash hard fork that triggered the overall market sell-off.

Amidst the sell-off, Novogratz insists Bitcoin is digital gold, which means it gets to operate like a legal pyramid scheme. In line with the optimism, the billionaire has invested in a virtual world company by the name High Fidelity. The company seeks to make it easy for people to spend their virtual currencies.

High Fidelity builds on Galaxy Digital a cryptocurrency hedge fund that Novogratz helped start. The hedge fund has not had the best of runs in the market having lost a whopping $136 billion in the first three quarters of the year.

ICOs Concerns

While bullish about cryptocurrencies, Novogratz believes the Initial Coin Offerings market is pretty done. Increased regulatory pressure and scrutiny has all but stifled growth in the sector. Regulators around the world are talking tough about ICOs having emerged that most of them collapsed leading to the loss of huge chunks of investments

However, the Securities and Exchange Commission does not want to kills ICOs altogether.

“But the SEC doesn’t want to kill this innovation; we’ve spoken to them at length. I think you will see a market for security tokens—a real estate portfolio that is tokenized, for example. These aren’t things that go from $1 to $1,000,” said Mr. Novogratz

Unlike normal tokens issued in ICOs, security tokens tend to be stable. The fact that they can yield as much as 14% would go a long way in making them interesting investments for investors eyeing opportunities in the burgeoning sector.