Billionaire Michael Novogratz on why he launched a crypto index


MARIA: WELCOME BACK. BITCOIN PRICES HAVE BEEN RALLYING THE LAST FEW WEEKS. JUMPING 50% IN PRICE IN EARLY APRIL THE NOW 9,900. MICHAEL NOVEMBER GRATZ IS A BITCOIN BELIEVE. NOW LAUNCHING A KRIT NOW LAUNCHING A CRIT NOW LAUNCHING A CRYT NOW LAUNCHING A CRYPTOCURRENCY INDEX AND HE’S JOINING ME NOW. MIKE, GREAT TO SEE YOU AGAIN. THANK YOU FOR JOINING US. YOU’VE FOUNDED A NEW CRYPTO CURRENCY INDEX.>>INDEED. WE TEAMED UP WITH BLOOMBERG IN A PARTNERSHIP. THE IDEA WAS TO GIVE THE CRYPTO COMMUNITY A HEDGE PARK TO COMPETE AGAINST. I WAS THINKING S&P CAME OUT IN ’62. THE GS COMMODITY INDEX, THE GSI, I WAS ON THE TRADING FLOOR WHEN THAT HAPPENED. AND THE IDEA WAS — AT GOLDMAN SACHS. THE IDEA WAS TO GIVE INSTITUTIONAL INVESTORS ACCESS TO THE NEW ASSET CLASS. AND WE FELT THIS SAME THING WITH THE INDEX WITH BLOOMBERG. GIVE THE FIRST INSTITUTIONAL QUALITY INDEX THAT WILL SLOWLY ALLOW REAL INSTITUTIONS, PENSION FUNDS AND SOUTHERN WEALTH FUNDS, BIG POOLS OF CAPITAL TO MOVE INTO THIS EXCITING NEW SPACE. MARIA: FOR A RETAIL INVESTOR, FOR EXAMPLE, WHO WANTS TO GET INVOLVED IN BITCOIN, MAYBE THEY’RE NOT SURE ABOUT DOING SPECIFIC INVESTMENT IN BITCOIN ONLY. YOU CAN GET INTO THE INDEX AND HAVE EXPOSURE TO LOTS OF DIFFERENT BITCOIN. HOW MANY.>>THE BIGGEST CRYPTOCURRENCIES. IT WILL GROW UP TO 15 COINS ONCE THERE’S ENOUGH VOLUME AND LIQUIDITY ON THE RIGHT EXCHANGES. AND BLOOMBERG ACTUALLY RUNS THE WHOLE PROCESS. MARIA: YOU WERE REALLY ONE OF THE EARLY BELIEVERS. YOU BOUGHT BITCOIN FIRST AT LIKE WHAT PRICE?>>LIKE $96. MARIA: IT WENT UP TO WHAT? WHAT WAS THE HIGH?>>19,900. MARIA: THAT’S INCREDIBLE. DID YOU SELL A LOT OF THAT?>>I SOLD A LOT ALONG THE WAY. PART OF IT WAS LITERALLY A YEAR AGO THIS TIME I GAVE A SPEECH AT A CONFERENCE — THERE ARE CONFERENCES THURSDAY, FRIDAY AND ALL NEXT WEEK. THE BIG CONFERENCES CONSENSUS, THERE’S 7,000 PEOPLE THAT HAVE PAID $2,000 A SHOT. MARIA: WOW TO GO TO THE CONFERENCE.>>SO I SPOKE AT IT LAST YEAR AND I GOT OFF OF THE STAGE AND I LITERALLY GOT MOBBED LIKE I WAS BRUCE SPRINGSTEEN OR BON JOVI IN NEW JERSEY AND THAT TO ME WAS A GREAT SIGN TO START SELLING. AND IT WAS LIKE 11,000 AT THE TIME ALL THE WAY UP TO $19,000. AND IT FELT LIKE WE WERE AT THE TAIL END OF THE MANIA LAST YEAR. AND IT WAS. I THINK THE RETAIL BUBBLE POPPED IN JANUARY WHEN WE GOT TO 19,000 IN BITCOIN AND THEN 1300 IN E NEAR YUM. THEN YOU HAD A 75% CORRECTION WHICH WAS QUITE PAINFUL. MARIA: SURE. WHAT DID YOU SEE WHEN YOU BOUGHT IT BELOW 100, 96. WHAT DID YOU SEE THAT MAYBE OTHERS DIDN’T? YOU WERE REALLY AN EARLY BELIEVER. WHY DID YOU KNOW THAT THERE WOULD BE PROMISE HERE?>>YOU KNOW, THE WHOLE CRYPTO REVOLUTION COMES OUT OF A BREAKDOWN IN TRUST AND INSTITUTIONS. AND IF YOU THINK ABOUT POST ’08 AND THEN WE DID THE QUANTITATIVE EASING. THE PROCESS TOOK A LONG TIME. 2012 WE HAD THE EUROPEAN FINANCIAL CRISIS. IT WAS RIGHT THERE WHEN BITCOIN WAS KIND OF STARTING TO AT LEAST BREAK INTO MY ZONE, YOU KNOW, THE WHITE PAPER WAS WRITTEN IN 2008. AND IT FELT LIKE THERE ARE ENOUGH LIBERTARIANS, ENOUGH PEOPLE THAT THOUGHT INFLATION IS GOING TO A ZILLION. I MEAN REMEMBER, REALLY SMART PEOPLE, PEOPLE LIKE PAUL SINGER WAS WANTING TO THROW BEN BERNANKE IN JAIL BECAUSE HE THOUGHT WE WERE GOING TO HYPER INFLATE THE WORLD. SO THERE WAS A REAL SENSE THAT THIS IS AN ALTERNATIVE FOR CYBER PUNKS, THE LIBERTARIANS. MARIA: AND AN ALTERNATIVE FOR GOLD.>>IN MY MIND IT’S AN ALTERNATIVE OF GOLD. LET ME STORE MY WEALTH SOMEWHERE. THE COMPUTER SCIENCE IS REALLY COOL BUT JUST AS COOL IS THE TOKEN MECHANISM TO CREATE SOCIAL NETWORKS. THESE ARE PEER TO PEER NETWORKS. WE DON’T HAVE TO TRUST THE CENTER. WE CAN TRUST THE NETWORK, THE CRIP TOLLING INSIDE THE COMPUTER SCIENCE.>>WHICH IS WHY BLOCK CHAIN WAS BELIEVED. IT’S A STRUCTURE YOU CAN TRUST.>>BLOCK CHAIN IS A DATABASE. IT’S A REALLY GOOD DATABASE AND YOU’RE GOING TO SEE PRIVATE BLOCK CHAINS ALL OVER THE PLACE. IT WOULD BE SHOCKING TO ME IF EVERY CORPORATE TREASURY IN FIVE OR TEN YEARS DOESN’T HAVE A BLOCK CHAIN TREASURY. BECAUSE IT’S SO MUCH MORE EFFICIENT. YOU THINK ABOUT MICROSOFT HAS OFFICES ALL AROUND THE WORLD AND AT THE END OF THE EACH DAY MICROSOFT TAIWAN IS GOING TO EQUAL UP WITH THE SAN FRANCISCO OFFICE OR THE GERMAN OFFICE. AND YOU KNOW, THEY’RE WIRING MONEY ALL OVER THE PLACE USING THE SWISS SYSTEM. IN A BLOCK CHAIN DATABASE, THEY CAN HIT THE ONE BUTTON AND THE LEDGER JUST — YOU’RE CUTTING OUT LOTS OF PEOPLE AND LOTS OF MISTAKES. MARIA: WHAT DO WE NEED TO UNDERSTAND MORE ABOUT BITCOIN DO YOU THINK? WILL WE SEE BITCOIN GO BACK TO THE HIGHS ? -L.>>BITCOIN WILL GO BACK TO THE HIGHS ONCE WE HAVE A CUSTODY SOLUTION THAT PEOPLE REALLY TRUST. WHAT’S INTERESTING IS — IT’S A GRAND IRONY IN SOME WAYS. THE COINS THEMSELVES, WHEN THEY’RE FLOATING OUT IN THE ETHER, IF YOU WANT TO THINK ABOUT IT, ARE REALLY SAFE. WHAT IS AT RISK IS YOUR PRIVATE KEY. SO YOU’VE GOT A KEY WITH LOTS OF LETTERS AND NUMBERS ON IT. YOUR ACCESS TO YOUR COINS. IF YOU LOSE THAT KEY, YOU’VE LOST YOUR COINS. SO PROTECTING THOSE PRIVATE KEYS IS A BIG INDUSTRY. THERE ARE ALL KINDS OF CUSTODY SOLUTIONS QUITE FRANKLY THAT ARE REALLY GOOD. I FEEL 100% CERTAIN THAT THEY’RE SAFE THERE. BUT I ALSO KNOW IF YOU’RE SITTING IN THE STATE OF WISCONSIN AND YOU’RE RESPONSIBLE FOR, YOU KNOW, YOUR STATE’S PENSION MONEY, YOU’RE PROBABLY NOT GOING TO RISK YOUR CAREER ON A COMPANY THAT’S CALLED ZAPPO JUST YET. YOU’RE GOING TO FEEL BETTER IF IT SAYS BANK OF NEW YORK OR GOLDMAN SACHS. MARIA: A GOOD ANALOGY.>>UNTIL WE GET INSTITUTIONAL CUSTODIANS TO SAY HEY, YOUR KEYS ARE SAFE. THE BIG INSTITUTIONS ARE GOING TO BE MORE RHETT TO BE MORE REDTT TO BE MORE RED SANT RB TO BE MORE RED SANT.RB MARIA: AND THEY HAVE BEEN.>>I’VE SEEN LOTS OF PLAYERS SPENDING TIME AND EVERY TRYING TO FIGURE OUT HO TO GET INTO THE BUSINESS. YOU’RE GOING TO SEE BIG ANNOUNCEMENTS SAYING WE’LL CUSTODY THIS STUFF. MARIA: VERY PIONEERING OF YOU. BCI IS THE INDEX DESIGNED TO TRACK THE PERFORMANCE OF THE LIQUID POSITIONS OF THE CRYPTO CURRENCY MARKET. LET ME GET YOUR TAKE ON THE STOCK MARKET AND THE BROADER MARKETS OUT THERE. WHAT’S YOUR TAKE ON WHERE WE ARE NOW?>>WE’RE IN A RATE CYCLE WHERE THE RATES ARE GOING HIGHER AND THE FED I THINK IS GOING TO CONTINUE TO PUSH RATES UP HIGHER. I DON’T THINK THEY’RE GOING TO ACCELERATE BUT THEY’RE GOING TO KEEP MUSHING KEEP PUSHING THE RATES HIGHER. WE’VE GOT A PRESIDENT THAT CREATES LOTS OF INSTABILITY, GOOD AND BAD. THERE’S MORE RISK. RATES ARE GOING HIGHER. AT THE SAME TIME, A SYNCHRONIZED GLOBAL RATE SYSTEM. I THINK THE STOCK MARKET IS GOING TO STAY VOLATILE BUT GRIND HIGHER UNLESS, YOU KNOW, LONG, BECAUSE OUT OF RISK-ADJUSTED BASIS, IT’S A RISKIER TRADE. BUT I THINK, YOU KNOW, WE STILL HAVE ENOUGH MONEY IN THE SYSTEM THAT WE’RE HEADING HIGHER. MARIA: AND IT’S A GOOD BACKDROP, ECONOMY DOING WELL.>>ECONOMY IS DOING WELL. MARIA: NORTH KOREA WILLING TO GIVE UP ITS NUCLEAR AMBITIONS, WE’RE TOLD.>>WE’RE TOLD. MARIA: WE’LL SEE ABOUT THAT.>>THE EUROPE THAN ECONOMY IS DOING OKAY, THE JAPANESE ECONOMY IS DOING OKAY. THE FIRST TIME I CAN REMEMBER THAT WE’VE GOT A SYNCHRONIZED GLOBAL SHIFT TO THE RIGHT. AND IF WE GET AN INFLATION NUMBER LIKE YESTERDAY, A LITTLE LOWER — BECAUSE THE RISK REALLY WOULD BE THAT THE FED HAS TO ACCELERATE AND RATES GO UP AND FINALLY WE SAY WHAT ARE WE

16 thoughts on “Billionaire Michael Novogratz on why he launched a crypto index”

  1. We already built and launched this at my company.

    SumCoin. Go look at twitter @sumcoinofficial

    This guys thing isn't even a coin! 😂

    Interview me. I'll educate you

  2. Michael N. Means well with his financial engineering. All i have to offer everyone is my Youtube message on Money titled Giving and Receiving can be accessed with rev. waldensmith. All my Youtube messages are divinely inspired and free to all prepared from a different perspective to bring hope encouragement and inspiration with no monetary attachments. Thks for viewing if you can and feel free to pass on to others if you feel led.

  3. These billionaires need to find other hobbies than imposing themselves on others. We are not interested in their idiotic ideas.

  4. Absolutely worthless…
    When the shit hits the fan…does anyone think these bullshit scams are going to be there for them?
    Banks are scams too…
    Baling them out is all that saved them…
    Anybody who trusts this bullshit is insane…

  5. Its Very Funny how people are so confused about what an Investment is, Late last year November, The Price of Bitcoin increased to its Climax from 13,000 USD to 20,000 USD, Most people who bought at a very low price became more Richer because they had excess of gain while selling, many others were regretting not buying when it was Dipping. In March 2018, the price of Bitcoin Fell to an Unbelievable 6,000 USD and the same people started panicking that it was never going to Rise again, They didn’t know it was another opportunity for them to buy the Dip.. I was not just Hodling my *5.8Btc*, I bought extra *2.5Btc * and i found out a very reliable trading strategy which i was able to make *35Btc with the 8Btc * I had. Of course I had someone who was guiding me through the Road to becoming a Crypto Millionaire, His name is *Robert Wells , Let’s keep spreading Words about Him to help the Ignorant people who are loosing. You can Reach his mailbox or text him on Skype/Google Hangouts at ([email protected]) or Telegram +1(631)620-6929

  6. Dayuuuuuum… I'd love to see those big eyes get watery as she gags on my third leg… woofffff

  7. I am torn by his thesis of getting institutional investors in crypto. The whole idea of starting crypto was to tear down the institution that are in place today. Crypto takes the middle man out of the financial system. "Zappo" is in place to replace the institution. Novogratz is doing his hardest to bring back the institutions because that is all he knows. Will be interesting to see if he succeeds in breaking the revolution in crypto by attempting to let institutions take control of crypto!

  8. Cheers! Have a look at performance of one of the Blackmoon's tokens for the last two weeks! The most risky strategy in the first set of crypto strategies at Blackmoon platform. +51% in two weaks – to much to be true 🙂 Wow!

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