“Bitcoin could be at $40,000 at the end of 2018. It easily could,” Novogratz told CNBC yesterday. “Ethereum, which I think just touched $500 or is getting close, could be triple where it is as well,” he added.
While Bitcoin is closer and closer to the $10,000 mark, Ethereum, the second largest cryptocurrency by market capitalization, hit a record high of $493.40 yesterday.
Novogratz said the cryptocurrency’s fast growth is the consequence of an influx of new money, coming particularly from Asian investors, and the cryptocurrencies’ finite number of units: 21 million coins in the case of Bitcoin.
“What’s different about these coins than other commodities…there is no supply response here. “It’s a speculator’s dream in that as buying happens there’s no new supply response that comes up. So, every price move gets exaggerated.”
Novogratz also said that, even though, around 20% of his own net worth is invested in cryptocurrencies, he doesn’t recommend others to do so. The former Fortress’ executive thinks between 1% to 3% of an investor’s net worth would be the right figure for retail investors and 5% to 10% for wealthier investors.Trade now
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