What are the first 2 innings in the digital asset revolution? He says Bitcoin is the 3rd.
Billionaire Mike Novogratz says 10% of his money is in Bitcoin and Ether
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Re: Billionaire Mike Novogratz says 10% of his money is in Bitcoin and Ether
#52Has anyone noticed the disparity between how many articles get written about btc's price, and how little gets written about its real-life uses and benefits?
That's because Bitcoin is still today too cumbersome to be used for anything other than speculation and drugs. No one goes to the grocery store thinking "gosh, I sure wish I could transfer some money to an exchange, buy some BTC, set up a wallet, transfer the BTC, wait for confirmations, scan a QR code to pay, and wait for confirmations again to pay for my groceries". The only people that want this are early early ad…
I don't think this is accurate. The main use case for Bitcoin seems to be remittances and savings for the rich and middle-class in countries with unstable currencies, not grocery store payments. Compared to USD, it's cumbersome and expensive, but compared to gold or Western Union, it's clearly better.
Re: Billionaire Mike Novogratz says 10% of his money is in Bitcoin and Ether
#53Earlier quoted context omitted.
Because it's not an investment but a safety net like gold and silver. Crypto-currencies fans are the younger version of goldbugs.
> because it's not an investment but a safety net like gold and silver Only if you're a resident of an unstable country. Can you name a crisis where having a stash of gold and silver mattered? Do you think people are going to trade valuable goods (food? water? ammo?) for your metal bars? I can't imagine the circumstances. When SHTF the government (or someone else) will confiscate that wealth. They have in the past. P…
As a Russian, I have survived the USSR economic collapse. Having a stash of gold would be handy (dangerous, as it would have put a mark on your back, but still preferable to holding any amount of Soviet money, which became worthless in mere months.) Gold was traded for great value in the harshest of times there.
Re: Billionaire Mike Novogratz says 10% of his money is in Bitcoin and Ether
#54The actual quote is "Ten percent of my net worth is in this space ", said at the "Blockchain Disruption" forum [1]. A reasonable interpretation would be that 10% of his money is in blockchain companies . [1] http://www.hbscny.org/s/1738/cc/index2.aspx?sid=1738&gid=4&p...
"Novogratz says he bought Ether when it was trading for about $1. Today it's worth over $48."
He is worth ~$2B. Assuming he put 0.2% (only $4M) in Ethereum during the crowd sale, 3 years later Ethereum appreciates 48× and represents 10% of his net worth. Of course he says he is also invested into Bitcoin, not only into Ethereum. Say he purchased only $2M of ETH, that's 3300 BTC as of the crowd sale's initial phase (22 Jul - 5 Aug 2014 when 1 BTC was ~600 USD and purchased 2000 ETH,) so he got 6.7M ETH which is 9% of the total ETH supply at genesis.
Edit: oops. He didn't say he purchased at the crowdsale (0.0005 BTC or 0.30 USD per ETH) but when it was 1 USD per ETH. So he would have needed to plunk 0.6% / $12M of his wealth into Ethereum. Still a tiny fraction.
Re: Billionaire Mike Novogratz says 10% of his money is in Bitcoin and Ether
#55Earlier quoted context omitted.
That's because Bitcoin is still today too cumbersome to be used for anything other than speculation and drugs. No one goes to the grocery store thinking "gosh, I sure wish I could transfer some money to an exchange, buy some BTC, set up a wallet, transfer the BTC, wait for confirmations, scan a QR code to pay, and wait for confirmations again to pay for my groceries". The only people that want this are early early ad…
I've been asked a half dozen times in the past week to send (international) payments via Bitcoin. Not because the receivers are enthusiasts, but because it's the simplest way. There's admittedly a high cost of learning/adoption, but once that is overcome it's not an issue. My guess is that (like most technology) bitcoin will eventually be easy enough to use that we don't have to understand or think about it, the same…
I remember in 2013 there was a $148M bitcoin transaction. Instantaneous, 0$ in fees, no third-party involved, no currency exchanges. Granted, it was probably just moving money around the same organization's wallets, but that really opened my eyes. [1]
Someone described Bitcoin to me as the Internet of money. I'm guessing nobody at ARPA envisioned Facebook, Amazon, Netflix, or Google, but they created a platform upon which that innovation could occur. Bitcoin (or whatever) could be that platform for money.
Right now, I can see this being very useful for international remittances, like you have observed, commodity money (serving the role that gold does, as a hedge against currency devaluations, capital controls, etc), and in the informal sector esp. in the third world, where you have smartphones, but maybe not the financial institutions to bank with.
Re: Billionaire Mike Novogratz says 10% of his money is in Bitcoin and Ether
#56The actual quote is "Ten percent of my net worth is in this space ", said at the "Blockchain Disruption" forum [1]. A reasonable interpretation would be that 10% of his money is in blockchain companies . [1] http://www.hbscny.org/s/1738/cc/index2.aspx?sid=1738&gid=4&p...
What is riskier though, Bitcoin or a bunch of fly-by-night Bitcoin companies?
Re: Billionaire Mike Novogratz says 10% of his money is in Bitcoin and Ether
#57Earlier quoted context omitted.
That's because Bitcoin is still today too cumbersome to be used for anything other than speculation and drugs. No one goes to the grocery store thinking "gosh, I sure wish I could transfer some money to an exchange, buy some BTC, set up a wallet, transfer the BTC, wait for confirmations, scan a QR code to pay, and wait for confirmations again to pay for my groceries". The only people that want this are early early ad…
I don't think this is accurate. The main use case for Bitcoin seems to be remittances and savings for the rich and middle-class in countries with unstable currencies, not grocery store payments. Compared to USD, it's cumbersome and expensive, but compared to gold or Western Union, it's clearly better.
Do you really believe more Bitcoin is used for this than evading the law?
Re: Billionaire Mike Novogratz says 10% of his money is in Bitcoin and Ether
#58Earlier quoted context omitted.
Because it's not an investment but a safety net like gold and silver. Crypto-currencies fans are the younger version of goldbugs.
> because it's not an investment but a safety net like gold and silver Only if you're a resident of an unstable country. Can you name a crisis where having a stash of gold and silver mattered? Do you think people are going to trade valuable goods (food? water? ammo?) for your metal bars? I can't imagine the circumstances. When SHTF the government (or someone else) will confiscate that wealth. They have in the past. P…
I think the most valuable thing you can possibly own in a full blown collapse situation is a well stocked seed bank.
Re: Billionaire Mike Novogratz says 10% of his money is in Bitcoin and Ether
#59"Novogratz ranked #407 in the March 2007 Forbes list of world billionaires with a net worth of $2.3 billion [...] By 2012, after the decline of Fortress' stock price, his net worth had shrunk to $500 million." following the tendency, he may be a hobo right now. 10% of 100 bucks, probably
He needs to rebillionize, pronto. He'll be a laughingstock at Davos without that third comma in his net worth. Next thing you know, he'll have to buy a car with doors that open side to side, like a non-billionaire.
Might as well throw away that three comma painting and those comma pillows, eh? (Looking forward to season 4!!)
Re: Billionaire Mike Novogratz says 10% of his money is in Bitcoin and Ether
#60Earlier quoted context omitted.
>Not a billionaire, but also trying to keep some percentage of my net worth in cryptocurrencies. Worked great so far. 10% seems to be about right. I don't see how people can look at cryptocurrencies as investments over the long term. It's like saying you have all your money in Swiss Francs in a checking account that returns no interest because you think the Swiss are doing a stellar job at setting up an economy/banki…
Bitcoin should be seen as digital gold. It has no value in itself, but its likely that you will be able to use it for payment even if all else fails.
In the event of a societal collapse so great that no money is usable, it's pretty hard to imagine people caring about Bitcoin. There might not even be power in this weird Mad Max scenario. They'd probably want to barter for goods.