Billionaire Novogratz: Buying Bitcoin and Ethereum is the best investment of my life

According to foreign media CNN, billionaire Mike Novogratz has placed a big bet on digital currencies such as Bitcoin and Ethereum.

“Ten percent of my net worth is invested in this space,” Novogratz said at a forum hosted by Harvard Business School’s New York Club.

Novogratz declined to say how wealthy he is, but he previously worked as a hedge fund manager at Fortress Investment Group and was a partner at Goldman Sachs. In addition, Novogratz made the Forbes billionaires list in 2008 (when Forbes estimated his worth at $1.2 billion).

“This is the best investment I’ve ever made in my life,” Novogratz added.

A year ago, the price of a bitcoin was less than $500. Today, the digital currency is worth more than $1,200. Back in 2013, Novogratz predicted that the value of bitcoin would soar. He remembers that many people laughed at him at the time.

Since then, the price of Bitcoin has been on a roller coaster ride. In late 2013, the price of Bitcoin soared to $1,000, and then fell to $250 in 2015. Since last year, Bitcoin has been soaring again. In January of this year, the price of Bitcoin once again exceeded $1,000, and it continues to grow upwards.

Now, Novogratz predicts that the price of Bitcoin will hit $2,000.

Novogratz also warned the club crowd that "digital currency may bubble up," he said. And the best way to deal with this problem, Novogratz believes, is the old trick of Wall Street - putting eggs in different baskets.

For example, Novogratz was also an early investor in Ethereum, the second-largest digital currency by market value. Novogratz said he bought Ethereum when it was around $1, and today, the price of Ethereum is over $48.

Novogratz recalled that he met the young Ethereum founder Vitalik Buterin at a family dinner event. Buterin, who was only 21 years old at the time, shocked him and thought it was worth paying attention to Buterin.

“We are witnessing the third inning of this digital asset revolution,” Novogratz predicted. He doesn’t know what the outcome will be, but he plans to continue investing in digital currencies and blockchain.

Novogratz has become one of the biggest cheerleaders for blockchain on Wall Street, but his bets are not always right. In his last year at Fortress Investment Group's Marco Fund, he lost nearly 20% because of his investment in emerging markets. Later, Fortress Investment Group closed the fund, and therefore, Novogratz chose to exit Fortress Investment Group in 2015.

"We've had a very challenging two years, and I don't think the current environment is conducive to achieving our best outcomes," Novogratz said.