Famous cryptocurrency billionaire Michael Novogratz, CEO of Galaxy Digital, suggested an ideal portfolio for young investors. The list includes cryptocurrencies, as well as precious metals and stocks.
Michael Novogratz shared an ideal portfolio for a $100,000 investment
Novogratz is one of the loudest advocates of the cryptocurrency industry. Recently, he criticized the actions of US regulators that put pressure on the industry. In a recent interview, he surprisingly shared his own recipe for a viable investment portfolio that includes cryptocurrencies.
Galaxy Digital CEO proposes a portfolio of Alibaba stocks, silver, gold, Bitcoin and Ethereum for risk-tolerant young investors. While the development of artificial intelligence is accelerating, the crypto advocate also has suggestions…
Novogratz’s proposal also coincided with the collapse of some US banks. The crisis has raised doubts about the reliability of the entire banking system. In anticipation of an impending credit crisis, the billionaire proposes ‘safer’ investments. He recommends investing in precious metals and Bitcoin due to their limited supply. Although other cryptocurrencies provide limited supply, it is very difficult for them to replace BTC in this regard.
In March, the Silicon Valley bank, popular with startups and crypto companies, collapsed. The incident caused disruption to customers like Circle, the company behind the USDC stablecoin. Circle’s funds are temporarily in the bank. Since then, USDC’s trading volumes and capitalization have decreased significantly.
How should $100,000 be divided?
In a recent interview with Bloomberg, Novogratz outlined the right investment portfolio for a young investor with a high risk tolerance. For those who want to invest about $100,000, he recommends purchasing Alibaba shares along with other investments. According to Novogratz:
If they were young and had a high risk tolerance, I would have bought Alibaba stock. I would be buying silver, gold, Bitcoin and Ethereum. That would be my portfolio.
Buy $BTC!!! https://t.co/UyGNaGXzyI
— Mike Novogratz (@novogratz) July 27, 2023
In March, “Bitcoin and Ethereum have been the best risk-adjusted investments for two years, three years, four years this year to date. Individual investors buy them,” said Novogratz, suggesting a different strategy for low risk takers. This time, “30% of the portfolio is in exchange-traded assets. Allocate the remaining 70% to bond and index funds.
“You don’t want to bet against Sam Altman right now”
Galaxy Digital CEO also shared his views on some of the most important events in the cryptocurrency industry. Novogratz bases his optimism about the potential of artificial intelligence on the moves of OpenAI CEO Sam Altman.
Sam Altman-backed Worldcoin debuted last week. Novogratz predicts that the price will rise even higher this cycle. At this point, “I think the price could potentially go much higher. Because there is a strong AI frenzy cycle. “I don’t know if we’re all going to use that as our identity,” she says.
Meanwhile, another important comment by Novogratz is about Larry Fink’s influence on Bitcoin. Larry Fink is the CEO of BlackRock, considered the world’s largest asset manager. In June, BlackRock announced the potential launch of a Bitcoin spot exchange-traded fund (ETF).
Meanwhile, what really excites Novogratz is Fink’s transformation from a crypto skeptic to a Bitcoin believer. Fink now sees Bitcoin as an “international asset”. Novogratz believes Fink’s transformation demonstrates increased trust in Bitcoin. He also states that his positive comments contribute to the popularity of cryptocurrencies.
Larry Fink believes in the cryptocurrency industry
Recently, BlackRock proposed an optimal portfolio allocation of 85% in Bitcoin. According to Novogratz, BlackRock’s attempt to launch a Bitcoin ETF and Fink’s positive comments are part of the cryptocurrency “population cycle.” He says this will help Bitcoin break its record of $69,000.
Novogratz’s perspective on cryptocurrency regulations
According to Michael Novogratz, the Ripple lawsuit decision gives hope for the crypto industry amid regulatory restrictions. While the decision was considered a victory for cryptos, Novogratz underlined that “the rules are nowhere near clear.”
Meanwhile, financial services company Galaxy Digital remains committed to New York. Novogratz confirmed that Galaxy Digital has no plans to leave the US or New York, although parts of its business have recently moved overseas.
Novogratz’s advice is also partly part of the traditional investment strategy. Precious metals are considered a safe haven for capital during economic crises. All in all, investing in cryptocurrencies is a smart option for young investors, especially if they are patient and anticipating a new bull market. As we quoted as Kriptokoin.com, the famous writer Robert Kiyosaki has similar views.
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