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

The post Why ‘Billionaire’ Novogratz Holds 10% of His Wealth in Bitcoin and Ether appeared first on Bitcoin News.

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


Need to calculate your bitcoin holdings? Check our tools section.

The post Why ‘Billionaire’ Novogratz Holds 10% of His Wealth in Bitcoin and Ether appeared first on Bitcoin News.

Humaniq Partners With Deloitte, Raises US$3.8m Through ICO

TheMerkle Humaniq Deloitte PartnershipIt is evident the Humaniq crowdsale has not gone by unnoticed. Not only did the team successfully raise over US$3.8m so far, but the project’s team also signed a contract with Deloitte. Most people will know Deloitte for their financial services, and it is intriguing to see them take a keen interest in Humaniq. Providing financial services to the 2 billion unbanked people is a massive undertaking, and having a partner such as Deloitte will be quite beneficial in the long run. Deloitte Teams Up With Humaniq Cryptocurrency enthusiasts are well aware of what Humaniq aims to achieve by now.

TheMerkle Humaniq Deloitte Partnership

It is evident the Humaniq crowdsale has not gone by unnoticed. Not only did the team successfully raise over US$3.8m so far, but the project’s team also signed a contract with Deloitte. Most people will know Deloitte for their financial services, and it is intriguing to see them take a keen interest in Humaniq. Providing financial services to the 2 billion unbanked people is a massive undertaking, and having a partner such as Deloitte will be quite beneficial in the long run.

Deloitte Teams Up With Humaniq

Cryptocurrency enthusiasts are well aware of what Humaniq aims to achieve by now. The project is all about providing financial inclusion products to the 2 billion unbanked people around the world. With a strong focus on Asia, South and Central America, and Africa, Humaniq will use blockchain technology to provide these direly needed services to communities in those areas. Additionally, Humaniq plans to expand their services to the rest of the world as well in the future.

In the cryptocurrency world, the project raised over US$3.8m during their Initial Coin Offering. While that amount will be put to good use, it is of the utmost importance the project partners up with established entities. The first major partner to take a keen interest in the project is none other than Deloitte. With their expertise in legal, auditing, plus a strong focus on blockchain-based solutions, Deloitte is a very valuable partner for Humaniq.

Strategic partnerships like these immediately give the Humaniq project even more credibility in the financial sector. Moreover, Deloitte can help the project highlight their legal efforts and intellectual property. Additionally, Deloitte will also provide consulting, tax, and advisory support to the Humaniq project. Since Deloitte has close ties to 80% of the Fortune 500 companies, this partnership will open new doors for Humaniq moving forward.

All of this will further advance the roadmap for Humaniq, which mainly focuses on using existing scientific and technological developments for the betterment of the planet. Offering financial inclusion to the unbanked population is a big step in the right direction. Moreover, the platform uses biometric authentication to welcome new users to their platform, ensuring there can be no duplicate user records or people providing falsified information.

This platform will be of great value to the unbanked population living in remote and rural areas. Most unbanked people have no documents to prove their identity, which excludes them from access to traditional financial products and services. However, everyone in the world has unique biometrics, which will be leveraged by Humaniq to ensure these people will be able to enjoy basic financial services.

Given the explosive growth of smartphones and other internet-connected mobile devices, it is evident Humaniq is on the right track to make a big impact. Anyone can download the mobile application and set up an account in mere minutes, without needing documents to verify their identity. This is also part of the reason why the platform has seen so many people partake in their ICO, as thousands of people see the merit of what the project has to offer. The Humaniq crowdsale runs until April 27th, thus it is not too late to make a contribution just yet.

If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.

US Government Hacks Global Bank System, Neccesity of Bitcoin

The US government’s ongoing extensive surveillance on the global banking system and payment transfers is demonstrating an urgent necessity of a decentralized financial network such as bitcoin. Over the past few months, various organizations including Wikileaks and Shadow Brokers have exploited most of the malpractices of the National Security Agency of the US. One of the recent tools of the NSA that was leaked and exploited on the dark web was the NSA’s surveillance tool on the Swift global banking system. Motive of the US Government Government agencies and law enforcement are required to undergo a lengthy process of filing

The US government’s ongoing extensive surveillance on the global banking system and payment transfers is demonstrating an urgent necessity of a decentralized financial network such as bitcoin.

Over the past few months, various organizations including Wikileaks and Shadow Brokers have exploited most of the malpractices of the National Security Agency of the US. One of the recent tools of the NSA that was leaked and exploited on the dark web was the NSA’s surveillance tool on the Swift global banking system.

Motive of the US Government

Government agencies and law enforcement are required to undergo a lengthy process of filing a complaint and request to the Society for Worldwide Interbank Financial Telecommunications (Swift) in order to gain necessary financial information of certain bank accounts of businesses and individuals.

With a surveillance and hacking tool however, the NSA can surpass the above mentioned process by simply gaining access to the actual Swift network without alarming its system and infrastructure. According to representatives of Shadow Brokers, a hacking group that has leaked many pieces of malware in the past, the hacking tool of the NSA allows the US government to surveil financial transactions settled within the Swift network with full transparency.

Matt Suiche, founder of the United Arab Emirates-based cybersecurity firm Comae Technologies, said in an interview with Reuters:

“If you hack the service bureau, it means that you also have access to all of their clients, all of the banks.”

While some security analysts and firms including EastNets denied the claims of Shadow Brokers, prominent whistleblowers and security experts including Edward Snowden explained that if the exploitation of the NSA hacking tool by the security firm Shadow Brokers is in fact true, it could be described as the “Mother of All Exploits.”

In the meantime, Swift announced that its cyber security and research team were not able to find any evidences to conclusively determine the surveillance allegation against the US government.

“We have no evidence to suggest that there has ever been any unauthorized access to our network or messaging services,” said the representatives of Swift.

Necessity of Bitcoin

Whether the US government actually utilized the NSA’s hacking tool to surveil the Swift network without permission from Swift and its clients is not the major issue. The main problem is that such hacking tools exist and they are capable of unraveling transactions settled across the world.

Any centralized financial networks such as Swift impose such vulnerability, as any network, server or database connected to the Internet is vulnerable to hacking attacks, surveillance and data breaches, if it is not designed to be immutable or decentralized, unlike bitcoin and other cryptocurrencies.

Each transaction on the bitcoin blockchain is identified with cryptographic proof and it can be accessed on the bitcoin blockchain. Most importantly, because the bitcoin blockchain is public, it cannot be manipulated by a government agency like the NSA with sophisticated hacking tools.

Although there exists strict Anti-Money Laundering (AML) and Know Your Customer systems in place on the majority of the world’s bitcoin and cryptocurrency exchanges, government agencies and law enforcement agents must go through proper channels to obtain the data.

If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.