- A cryptocurrency fund king Mike Novogratz calls Bitcoin the biggest bubble ever
- Ripple approaches a key resistance after breaking out of a downtrend line
- Venezuela might consider adopting Bitcoin as its new currency soon
We’ve already known a great deal of personal opinions voiced by the most prominent people when it comes to financial markets. There was another one expressed yesterday when Mike Novogratz called Bitcoin the biggest bubble ever but his recommendation was at odds with that view. He is a former macro manager at Fortress Investment Group which announced a closing of Fortress macro fund after two years of losses.
However, even as he regards Bitcoin as the biggest bubble in the world, he has decided to start raising $500 million to forge a hedge fund which will invest in cryptocurrencies, initial coin offerings (ICOs) and other related companies. His idea is to be funded partially by his own money ($150 million) while the remainder of the sum is to be raised by January, mainly from family offices, wealthy individuals and fellow hedge fund managers. He justified his decision that even as it’s a bubble, you should own it. He also referred to the past bubbles saying (a quote) “Remember, bubbles happen around things that fundamentally change the way we live”. “The railroad bubble. Railroads really fundamentally changed the way we lived. The internet bubble changed the way we live. When I look forward five, 10 years, the possibilities really get your animal spirits going.”
Ripple (XRPUSD) is approaching a key resistance area placed at around 0.203$. Notice that the price managed to break a descending trend line a few days ago which could convince more traders to enter the (possibly commencing) bull market. Source: xStation5
Let’s take a look at Latin America as well where Venezuela might be a precursor in terms of implementation cryptocurrencies into the real economy. Firstly, keep in mind that the country relies heavily on oil export which accounts for an exceptionally large part of economic growth. Beside it, Venezuela is suffering from hyperinflation which could force the country to replace its official currency (bolivar or VEF) with Bitcoin. That a decision might help the beleaguered country get out of hyperinflation. Let us also remind that Venezuela is already short of money to pay bond interests or redeem its debt when matures.
Other stories related to cryptocurrencies worth looking at:
- Sharps Pixley, a well-known gold dealer based in London, is now accepting bitcoin payments for its precious metal products
- South Korea kicks off inspections of Bitcoin exchanges