‘Stay the Course’: Billionaire Bitcoin Bull Mike Novogratz Has Advice for the Bitter Crypto Winter

Mike Novogratz — the CEO of cryptocurrency merchant bank Galaxy Digital — admits that the Crypto Winter will probably last longer than he had anticipated. However, the Goldman Sachs alum still believes that institutional investors will eventually enter the market, and remains an avowed bitcoin bull.

Mike Novogratz ‘Very Confident’ of Institutional Entry

Novogratz tweeted: “Don’t think we head north for at least a few more months. Always take longer for institutions to move. Very confident they will. Tons of activity under the hood. Stay the course.”

Had Set $20,000 Bitcoin Price Target for 2019

The protracted market slump has caused many a crypto enthusiast to scale back their exuberance. And Novogratz is one of them.

In November 2018, Novogratz boldly set a $10,000 bitcoin price target for the end of the first quarter of 2019. He also predicted that bitcoin would top $20,000 this year.

But as the market slump continues with no signs of an immediate reversal, Novogratz has now apparently adopted a more sober outlook.

Crypto Executive: Stop Freaking Out

That said, don’t expect bitcoin stalwarts to jump ship anytime soon. We’re at the beginning of February, and there’s still almost 11 full months left in 2019.

Crypto evangelists like Dan Morehead — the CEO of bitcoin investment firm Pantera Capital — say it’s time for those with short-term mindsets to stop freaking out. Why? Because the industry has weathered bear markets before, and this one is different from the others, Morehead insists.

“In the previous one, I had more of a worry in the pit of my stomach about whether blockchain was actually going to work.

With this one, the underlying fundamentals are much, much stronger than they were in the 2014-2015 Crypto Winter.”

The Few Who Do Versus the Many Who Talk

Critics may say that bitcoin bulls like Dan Morehead, Mike Novogratz, the Winklevoss twins, and Circle CEO Jeremy Allaire are unrealistically optimistic. That’s probably because they have skin in the game.

They’re not just talking the talk; they’re walking the walk. They have invested a lot of their own money in the success of the industry. Therefore, they are highly motivated to ensure it thrives.

Last month, Novogratz increased his holdings in Galaxy Digital to 79.3% after acquiring an additional 2.7% of its outstanding shares for $5.4 million. He previously held a 76.6% stake.

The former Wall Street banker is now Galaxy Digital’s single largest shareholder, with 221 million shares. If that’s not a sign of conviction or personal accountability, it’s hard to say what is.

In response to skeptics who are gleefully cheering the current abysmal state of the market, Novogratz sagely points out that “revolutions don’t happen overnight.”

bitcoin bulls billionaires jack dorsey tim draper
These tech billionaires are bitcoin bulls. Would you bet against them? (YouTube screenshots)

Trader: Bitcoin Will Crater Into Extinction

Meanwhile, skeptics are betting that the crypto market will crater into extinction. Not surprisingly, the most vocal opponents are people from traditional financial institutions and legacy banks whose existence is threatened by the rise of the crypto industry.

Three weeks ago, futures trader Anthony Grisanti predicted that the bitcoin price would soon tank below $3,000 amid a mass sell-off.

Grisanti is an analyst at CNBC who previously traded energy futures at Bear Stearns. Like other crypto naysayers, Grisanti believes it’s only a matter of time before bitcoin totally collapses.

He claims that whenever the bitcoin price rallies a little, it’s because people are liquidating their positions. “Whether or not they’re liquidating outright or the futures, they are liquidating,” Grisanti claims.

CNBC Analyst: Bitcoin Fans Are Clueless

Grisanti’s fellow CNBC commentator, Scott Nations, also blasted bitcoin, saying it has no value. He also dissed millennial crypto fans, saying they’re too inexperienced to understand that they’re witnessing a bubble that’s bursting.

“If you are in your 20s, you have never seen an asset bubble. You were a teenager during the housing bubble. You were not even a teenager during the dotcom bubble. Well, baby, this is a bubble! And right now, it’s coming unglued.”


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Author: Samantha Chang 
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Novogratz believes 2019 a good year for crypto, despite losing $136M in 2018

Billionaire and veteran investor, Mike Novogratz shares his stance and outlook on cryptocurrency in the coming years.

Despite his investment company, Galaxy Digital’s loss of $136 million throughout 2018 due to crypto’s ongoing bearish market, Novogratz still has faith in crypto, saying, “I fundamentally think you’re going to see big adaption in 2019, 2020.”

Although, he admitted that the current outlook of the crypto market is not promising when he said, “It’s been a horrible bear market in tokens. There’s plenty of reason to be depressed.”

He pointed several crucial events that might have bolstered the downturn of the cryptocurrency, such as the Securities and Exchanges Commission (SEC)’s rejections towards Bitcoin ETF as well as their “stricter actions” against few fraudulent ICOs.

According to him, these has somehow introduced uncertainty to the market, which led to the most recent selloff.

“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,” he said in a conference call with Ethereum World News.

However, the former Goldman Sachs’ partner is convinced that moving forward, the relationship between the SEC and cryptocurrency will get better, which he claimed as “a driving force for new growth” that will pave the regulatory path for larger investors seeking to join the crypto market.

Moreover, he also believes that the integration of blockchain in the e-gaming space cryptocurrency would be one of the things that will “save” cryptocurrency’s fate in the future.

Quoting what he said, “Lots of the items in the digital world, the e-gaming space, are low value items so I think people will be more comfortable participating in blockchain. We’re making big investments in that area.”


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Author: FIFI ARISANDI
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Winklevoss Twins Win Patent for Securely Storing Digital Assets

The Winklevoss twins have won a patent for securely storing digital assets which adds to a long list of nine successful patents won by the billionaire twins, per information published on the website of the U.S. Patent Office.

The new patent, labeled 10,068,228 sets out a plan for cold storage of digital assets by building a computer network, made up of isolated computers used to host secure storage wallets for cryptocurrencies and cryptocurrency exchange-traded products (ETPs).

According to the filed document with the Patent Office, the computers will be physically separated from one another, but will be connected to the blockchain when moving assets and carrying out transactions on the network. As a result, they will effectively function as cold storage devices permitting user access only with the use of unique cryptographic keys.

New storage accounts on the network will have a separate cryptographic key, divided into several parts with each fragment saved onto an external storage device such as a USB drive, physically engraved onto paper, laminated cards and more.

An excerpt from the patent document abstract states that the “reference identifier” may be associated with each “digital asset account.”

“A respective reference identifier may be associated with each digital asset account. At least one of the one or more private keys corresponding to each digital asset account may be divided into a plurality of private key segments and written to a card along with the respective reference identifier to create sets of collated cards, wherein each set comprises cards corresponding to different private keys.”

The storage of the cryptographic keys starts at production. According to the document, they may be stored on both physical and electronic mediums, but at least, one set of the keys must be kept on an electronic storage device such as a USB drive. The document further states that, when keys are not created onsite at the storage location, they must be delivered in person or via fax to the storage location. Owners must also present three separate forms of identification when creating and accessing their accounts.

The application reads in part:

“In embodiments, private keys for a multi-signature account may be distributed to a plurality of users who are required to authorize a transaction together. In embodiments, private keys for a multi-signature account may be stored as backups, e.g., in secure storage, which may be difficult to access, and may be used in the event that more readily available keys are lost.”

Several industry heavyweights have been clamoring for a reliable custody solution. Earlier this year, Goldman Sachs announced it was considering launching a crypto custody service. Famed crypto investor Mike Novogratz also weighed in on the matter, while speaking to Ran Neu-Ner on CNBC’s ‘Cryptotrader,’ where he suggested that a custody service from a trusted source could result in a price recovery of digital assets.

“I think the next move up is going to need custody from a trusting source. […] If I’m in the state of Wisconsin, I’m not going to risk my job on a company called BitGo.”


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Author:  Jimmy Aki
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