It’s no secret that Mike Novogratz is bullish not only Bitcoin, but Ethereum, blockchain technology, and ICOs. In an interview with CNBC’s Melissa Lee, Novogratz explains his interest and activity in the cryptocurrency space, what he thinks about Bitcoin being a bubble, and how much runway Bitcoin has. .

TL;DR: Mike Novogratz is speculating that we could see Bitcoin $10,000 in less than a year.

CNBC Fast Money Bitcoin Segment

Watch the CNBC Fast Money segment where Mike Novogratz is interviewed about Bitcoin below.

Hedge fund legend Mike Novogratz betting it all on bitcoin from CNBC.

Mike Novogratz Bitcoin Interview

This is the complete interview between of Mike Novobrazy by CNBC’s Melissa Lee. The segment was on Fast Money on October 10, 2017.

Melissa Lee:
Hedge fund legend Mike Novograz, he’s diving straight into Wall Street’s crypto craze with a big bet on Bitcoin. He joins us now from the Credit Suisse Bitcoin and Blockchain conference here in New York City for an exclusive interview. Mike, thanks so much for joining us. We appreciate it.
Mike Novogratz:
Thank you.
Melissa Lee:
People know you from Goldman Sachs. People know you from Fortress Investment. So, what are you doing right now with Bitcoin? You’re raising a fund?
Mike Novogratz:
You know I started investing in Bitcoin and then the whole ecosystem when I was at Fortress. And then as a private investor I’ve been very active in the space and I never thought I’d actually come out of retirement but the space is so exciting right now. I decided to build a business and I’ve hired a whole bunch of smart guys and we’re going to raise a fund, we’re going to build a business and hopefully take advantage of what I see as a revolution actually, a decentralized revolution.
Melissa Lee:
You’re pouring a lot of money of your own into this fund. Reports say it’s $150 million in what you hope to be a $500 million fund, Mike. Where are you investing right now? Is it strictly in the cryptocurrencies or are you also investing in the underlying blockchain technology?
Mike Novogratz:
You know I’ve been investing in Bitcoin and Ethereum and lots of different ICOs in venture in the ecosystem. We’ve mined. We took an approach way back that I just wasn’t smart enough to know what exactly was going to win and so play the whole ecosystem. And that’s that’s still our approach.
Melissa Lee:
Where do you see Bitcoin going. I mean a lot of people have a lot of crazy predictions out there. So, what’s yours.
Mike Novogratz:
Listen you know the one thing I’ve realized recently is I can hear the herd coming. I was just in San Francisco I met with a few big institutional investors and they’re still a ways away but they’re coming. Lots of funds are being raised. And so, I’m pretty confident to say it’s going higher. You know the hard part about manias, and I think this will be a real mania, is you have to have a lot of imagination and think where things could go. And, so often we set ourselves our own limitations by putting a price level on it. But, you know it would not surprise me if in the next six to ten months we’re over ten thousand.
Melissa Lee:
Over 10,000 in the next six to ten months. Would you call this a bubble, Mike? I mean if this were any other asset class you’d say a move like that constitutes a bubble.
Mike Novogratz:
Well you know, bubbles are funny because historically manias or bubbles happen around things that fundamentally change the way we live. If it’s the railroad bubble or the Internet bubble they really did change the way we lived. This blockchain revolution, this decentralized revolution, is going to change the way we live. We’ve gone from kind of an experiment to now we’re implementing. And I think just like in ’97 when you thought about the Internet we could have never understood the ubiquity of the Internet in 2017 even at the height of the bubble. Ten years, 15 years from now, you know blockchain and decentralized systems will be everywhere. And so, yes it’s a bubble. It’s going to be one of the great manias of all time. Bitcoin happens to be the bellwether of this entire decentralized revolution and so it’s the easiest way people can get exposure to it. So, I think Bitcoin probably runs the hardest but things like Ethereum I think will be the the public utility of this new space. And so, we’ve we’ve split our bets and we’re betting on a lot of the other ICOs as well.
Melissa Lee:
So, the Internet bubble imploded famously, Mike. So, does that imply that Bitcoin, that that bubble in Bitcoin will also have a similar sort of implosion? And, how does that happen? What triggers that?
Mike Novogratz:
You know right now total market cap of the whole blockchain-Bitcoin-Ethereum ecosystem is roughly 200 billion dollars. In 1999 the Internet got up to around six and a half trillion. And so, we are we are a long long way from what a mania looks like. And so, listen prices will always get ahead of themselves in new technologies. And so, just like you know we had a gold up and down. There’ll be big volatility in this stuff and at one point there’ll be a major correction. Why I think having a macro skillset and a macro hat to wear investing in this stuff is that you hope you understand when things run out of gas and you know try to get out before then. But, I do think just like in the Internet there are going to be companies that exist 20 years from now that really do change the way we do business.
Melissa Lee:
Sure. Bitcoin though is whole other asset class, Mike. And, so I’m wondering you know using that macro hat what sorts of indicators are you looking at to tell you that Bitcoin is not in a bubble right now and what sort of indicators are you going to look at to say you know what they’re flashing warning signs to me? What out there are you looking at?
Mike Novogratz:
So, I see Bitcoin really as a digital gold. It’s become a store of value and you know a lot of people say “How can that be a store of value?” Well, you know, but why was gold a store of value? There are 20 other metals you could have picked. But, somebody picking gold, maybe because it was shiny. There’s a limited supply. My kids walk around. You know I have four kids you know 60 percent of the waking day their heads are in a phone. And, so they’re growing up in a digital world. One day, you know their boyfriend’s going to give them digital flowers and they’re going to really enjoy the flowers. You know my mom would say “I want real flowers,” but as we move into a digital world having a digital store of value makes more and more sense. And so, where could the price of gold or silver go in a speculative mania? Who knows. There are a limited amount of bitcoins. Very few people own them at this point. There are less than five million people in the whole world that have crypto wallets and it’s a world that all has access. So you’ve got people in Taiwan and Korea and Japan and India and the United States and all over Europe that can participate. And so, I think you know you’ve got to let your imagine run on this one and things can go for a lot longer and a lot higher.

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