There are plenty of bitcoin bears. Just a couple include JPMorgan & Chase Co. chief, Jamie Dimon, Warren Buffett and Howard Marks.
But it seems more and more sceptics are now coming around to a digital coin they despised years ago. Just look at all the institutions that are now using bitcoin and blockchain technology to advance their operation. Or what about the hedge funds who are looking to bitcoin as a means to generate extraordinary returns.
Bitcoin’s Wall Street Fan
And now bitcoin has one more Wall Street fan — Morgan Stanley chief, James Gorman. As reported by Bloomberg:
‘Bitcoin is “certainly something more than just a fad,” Gorman said Wednesday at an event held by the Wall Street Journal. “The concept of anonymous currency is a very interesting concept — interesting for the privacy protections it gives people, interesting because what it says to the central banking system about controlling that.”’
While Gorman hasn’t bought any bitcoins himself, he has talked to a lot of people who have. ‘It’s obviously highly speculative but it’s not something that’s inherently bad. It’s a natural consequence of the whole blockchain technology,’ Gorman said.
But while Gorman is more interested in the blockchain’s applications, hedge fund manager, Mike Novogratz is far more interested in its speculative nature.
Novogratz, who flamed out of Fortress Investment Group, is planning to reinvent himself as the king of bitcoin. As reported by Bloomberg Novogratz is ‘starting a $500 million hedge fund to invest in cryptocurrencies, initial coin offerings and related companies.’
‘Novogratz will put up $150 million of his own money and plans to raise $350 million more by January, mainly from family offices, wealthy individuals and fellow hedge fund managers, said a person familiar with his plans.’
There’s no guarantee that Novogratz or you will make a fortune on bitcoin. But if the crypto continues to gain popularity and acceptance, it could become far more valuable than it is right now. To learn more about the secret world of bitcoin, click here.
Junior Analyst, Money Morning