Why ‘Billionaire’ Novogratz Holds 10% of His Wealth in Bitcoin and Ether

billionaireBillionaire Michael Novogratz reportedly revealed that he has 10 percent of his money invested in bitcoin and ether. He also predicts that the price of bitcoin will go to $2,000. Bitcoin.com looks into how much his net worth is and why he decided to invest in bitcoin. Also read: The One Man Supreme Court Bitlicense Battle

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billionaire

Billionaire Michael Novogratz reportedly revealed that he has 10 percent of his money invested in bitcoin and ether. He also predicts that the price of bitcoin will go to $2,000. Bitcoin.com looks into how much his net worth is and why he decided to invest in bitcoin.

Also read: The One Man Supreme Court Bitlicense Battle Begins in Two Weeks

10% of His Money in Bitcoin and Ether

On Wednesday, bitcoin investor Michael Novogratz spoke at a forum held at the Harvard Business School Club of New York. Referring to him as a “billionaire investor”, CNN Money reported him saying:

Ten percent of my net worth is in this space. […] It’s the “best investment of my life”.

However, he did not reveal how much his net worth is.

Why He is Pro-Bitcoin

Why ‘Billionaire’ Novogratz Holds 10% of His Wealth in Bitcoin and Ether
Michael Novogratz on Bloomberg in 2015

Novogratz has given several interviews about Bitcoin and blockchain technology. In May 2015, he gave a detailed explanation of why he personally invested in bitcoin during an interview with Bloomberg. Citing an open source community with “huge brainpower” from “over 30,000 individual programmers” working on Bitcoin, he said:

I think it’s real. […] There’s a lot of smart money going into it; I’ve never seen a small project with more human capital going into it, and so, I kinda want to bet just on that alone.

“I think it’s got first mover advantage, but certainly there are risks,” he further conveyed. “There will be a revolution in payment systems, and frankly, there will be a democratization of finance at one point.”

Self-Made Billionaire

Why ‘Billionaire’ Novogratz Holds 10% of His Wealth in Bitcoin and EtherNovogratz joined Fortress Investment Group four years after it was founded in 1998. He ran the Fortress global funds.

In 2007, Forbes listed him #317 on the Forbes 400, a list of America’s richest Billionaires by their estimated net worths. His net worth was $1.5 billion that year. He became a self-made billionaire “with the public offering of Fortress Investment Group,” Forbes wrote. However, Fortress shares had been sinking since its IPO. By the time Novogratz made the list in 2007, Fortress shares were down 45%, knocking the firm’s founders off the billionaire list, the publication detailed.

Why ‘Billionaire’ Novogratz Holds 10% of His Wealth in Bitcoin and EtherIn 2008, Forbes ranked Novogratz #962 on its list of “The World’s Billionaires”, even though his net worth had fallen to $1.2 billion. That year, Fortress shares were down 60% since its IPO, to about $12.

In 2012, the Observer reported that “Fortress shares were trading in the $3 range, down from a post-IPO high of $24.40, and Mr. Novogratz’s worth had fallen with it, down to about $500 million the last time Forbes checked.”

Up until October 2015, Novogratz was still managing approximately $2 billion in assets at Fortress. The fund made a few bad bets about the direction of the Swiss franc and the Brazilian interest rates. Within a couple of months, Novogratz lost about $250 million. Faced with the prospect of client redemptions, he cut his losses and vacated his position at Fortress, according to the Wall Street Journal. By that time, Fortress shares had fallen to $6. Today, the shares trade at about $5.

Moving from Fiat to Bitcoin

Why ‘Billionaire’ Novogratz Holds 10% of His Wealth in Bitcoin and EtherWhile Fortress shares had fallen 70-80% since its IPO and were trading approximately between $5 and $8 in 2013, Novogratz had already moved some of his money into bitcoin.

In October 2013, he said at a UBS conference in New York that “I have a nice little bitcoin position,” Bloomberg reported. “Enough that I’m smiling that it doubled,” he added. At that time, the price of one bitcoin was just $175.30. He also advised others to invest in bitcoin, stating that:

Put a little money in Bitcoin. […] Come back in a few years and it’s going to be worth a lot.

Then, on Wednesday, Novogratz told the Harvard Business School Club crowd that bitcoin’s price will go to $2,000. He also warned them that there will “likely be a bubble” in bitcoin and other cryptocurrencies and recommended diversification as a way to handle the bubble.

How many bitcoins do you think Novogratz owns? Let us know in the comments section below.


Images courtesy of Shutterstock, Fortress, Forbes and Bloomberg


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Top 4 Recent Technology-related Consumer Data Collection Scandals

TheMerkle Consumer Data Collecting ScandalsElectronics manufacturers and online service providers have a habit of collecting consumer data without wanting their users about this exposure. In fact, quite a few companies have been found guilty of this malicious behavior over the past few months, which does not bode well at all. No company should (inadvertently) collect user data and not be upfront about it, that much is certain. 4. We-Vibe The world received quite a nasty surprise when they learned a Canadian adult toy manufacturer was secretly collecting consumer data. The whole concept of an adult toy being capable of gathering information and send it

TheMerkle Consumer Data Collecting Scandals

Electronics manufacturers and online service providers have a habit of collecting consumer data without wanting their users about this exposure. In fact, quite a few companies have been found guilty of this malicious behavior over the past few months, which does not bode well at all. No company should (inadvertently) collect user data and not be upfront about it, that much is certain.

4. We-Vibe

The world received quite a nasty surprise when they learned a Canadian adult toy manufacturer was secretly collecting consumer data. The whole concept of an adult toy being capable of gathering information and send it back to the company is very disturbing, to say the least. We-Vibe tracked the intimate habits of its customers through the mobile companion app. Thankfully, this issue came to light before major damage was done.

Every consumer affected by the We-Vibe scandal received a US$199 compensation. Moreover, the users who controlled the app through a smartphone received up to US$10,000 each. Even though We-Vibe continues to deny any wrongdoing, nearly all of the collected data had to be destroyed in the process. Bluetooth-enabled adult toys are always a risk when it comes to ‘personal” privacy, to say the least.

3. Bose

A few days ago, a major news story broke regarding Bose. The audio company is apparently collecting user information through their wireless headphones’ companion application. Consumers are at risk of having listening habits exposed and sold to third-party advertisers. An official complaint has been filed against the company, and it is likely this court case will take some time to settle. So far, Bose spokespeople claim these comments are unfounded and inflammatory.

2. AdUps

There are quite a few low-budget Android phones on the market. BLUE is a company most people have come to know due to their powerful hardware at an affordable price. Unfortunately, the Blue R1 HD came with malicious backdoor software going by the name of AdUps. This app is specifically designed to give Chinese phone manufacturers are carriers a way to track consumer behavior for advertising purposes.

A further investigation into the AdUps company revealed their app is installed on over 700 million consumer devices. Not just smartphones, but also tablets and in-car entertainment systems may have this backdoor installed. Although the data never ended up in the hands of the Chinese government, this goes to show mobile phone bloatware is a very serious issue that needs to be addressed as soon as possible.

1. Vizio

Most US consumers will be all too familiar with Vizio, a brand known for their more than affordable consumer-grade televisions. Earlier this year, the company was forced to settle with the FTC over its consumer data collection practices. Vizio paid US$2.2m in fines. The company’s Smart Interactivity feature started tracking consumer data back in 2014 in a second-by-second manner. Unfortunately, the information also includes IP addresses and the opportunity to track information across devices.

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Bitcoin Proponents Are Laser Focused on One Particular Mining Pool

F2 PoolFollowing the Bitcoin scaling debate has been interesting over the past few months. A lot of people have been focused on certain characters and organizations within the cryptocurrency environment by highlighting their opinions and scaling choices on social media. One particular individual and entity of interest has been the mining group F2 Pool and the

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F2 Pool

Following the Bitcoin scaling debate has been interesting over the past few months. A lot of people have been focused on certain characters and organizations within the cryptocurrency environment by highlighting their opinions and scaling choices on social media. One particular individual and entity of interest has been the mining group F2 Pool and the pool’s associate Wang Chun.

Also read: Research Shows How Bitcoin Can Be Attacked Via Internet Routing Infrastructure

All Eyes on F2 Pool

The Chinese F2 Pool formally known as “Discus Fish” is a mining organization that was formed in May of 2013. The Chinese mining pool is well known for commanding a significant portion of Bitcoin’s hashrate distribution over the past few years. Currently, F2 Pool is the second largest mining operation behind Bitmain’s Antpool capturing 11 percent of the network’s hashrate. People have been focused lately on F2 Pool’s actions because many are curious to find out what scaling solution the pool supports.

Bitcoin Proponents Are Laser Focused on One Particular Mining Pool

So far figuring out whether or not F2 pool supports bigger blocks, or Segregated Witness (Segwit) has been quite confusing. From the signs of things and statements made, the mining pool would like to see both developments move forward. For instance, one vocal member of F2 pool, Wang Chun has been voicing his opinion on the subject for quite some time but in a very cryptic fashion.

Then this week on April 18th the Chinese publication 8BTC’s forum revealed a translated statement from F2 Pool that announced the organization was in favor of Segwit, but the announcement also stated the pool wants a larger block size.  

“Most people don’t realize that the debate is about what is best for bitcoin instead of choosing one specific scaling solution, Segwit, BU or other scaling solutions,” explains the mining pool’s announcement.

At F2Pool, we are in favor of Segwit plus a large block size. Segwit can help solve technical problems and a large block size is beneficial to the bitcoin ecosystem in the long run. But the hard fact is that we are not able to reach this goal under the current situation.

Can We Really Determine What Scaling Solution F2 Pool Supports?

Watching F2 Pool’s scaling signals when the pool mines blocks on the network has also been very confusing. The mining pool has signaled for Segwit but has also shown support for other proposals as well. A few weeks ago for an April Fool’s Day joke, the pool signaled for every proposal on the table including Segwit, Bitcoin Unlimited, Classic, and an 8mb increase. The pool also showed signs of supporting Segwit on the Litecoin network that day.

F2 Pool’s Wang Chun told his Twitter followers that day, “Bitclub stole my idea for the upcoming April Fool’s Day. Let’s signal BU + SW + Classic + XT +8M all together!”

Bitcoin Proponents Are Laser Focused on One Particular Mining Pool
Wang Chun meets with Bitcoin Unlimited developer Andrew Stone in China this past March.

Wang Chun’s Twitter Statements

Furthermore, Wang Chun has been revealing strong opinions about bitcoin development over the past few days. On April 18 Chun compared Core developers to Saddam Hussein winning 100 percent of the vote in 2002. “Core devs are no different from President Hussein IMHO,” explains Chun. The F2 pool associate goes on to say that the scaling debate is not about Segwit at all but more about development communication and listening.

“It’s not about segwit or not,” says Wang Chun. “It’s about communicating, listening, understanding, and respecting. All those the things current Core devs lack.”

Bitcoin Proponents Are Laser Focused on One Particular Mining Pool

The pool has been signaling for Segwit for the past three days according to network statistic websites. It seems the mining pool is pleased with taking a more humorous approach and has no problem joking around about block size debate. However, as the saying goes many true words are said in jest. It’s clear Wang Chun has a lot to say about the scaling subject and believes Bitcoin development communication skills with miners needs improvement.

What do you think about F2 Pool’s stance towards the scaling debate? Do you agree with any of Wang Chun’s recent statements towards developers? Let us know in the comments below.


Images via Shutterstock, and Twitter.


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