Founder of the world's largest digital currency fund: Bitcoin is the biggest scam in history

"Bitcoin will be the biggest bubble of our lifetime." Legendary fund manager Mike Novogratz said, "Prices will go where they should go."

Mike Novogratz said in an interview with US media that market regulation is tightening and digital currencies such as Bitcoin need more supervision. At the same time, other digital currencies such as ICO will be proven to be a false "get rich quick method."

Obviously, this is completely different from his position in the past two years. He has often expressed his optimism about digital currencies such as Bitcoin, Ethereum, and Litecoin. In 2013, he also said that the market will continue to rise and prices will soar. He believes that the current digital currency market of $100 billion will reach $5 trillion by 2022.

Not only that, Mike Novogratz also revealed at the Harvard Business School Club Forum held in April this year that he has invested 10% of his wealth in the digital currency market. He refused to disclose the specific amount, only saying that it was about hundreds of millions of dollars.

He said he bought Litecoin when it was priced at $1, making him one of the earliest investors in the digital currency. By the time he said this, Litecoin had risen to $48.

"This is the best investment I've ever made in my life," said Mike Novogratz, a former Fortress Investment Group LLC fund manager and former Goldman Sachs partner who was listed on the Forbes Billionaires List in 2008.

However, Mike Novogratz also warned at the Harvard University forum at the time that there might be a bubble in the digital currency market. He believed that the best way to deal with it was the old saying: Don’t put all your eggs in one basket.

In the past two years, digital currencies, led by Bitcoin, have repeatedly experienced a roller coaster of ups and downs, with prices fluctuating upwards. Bitcoin, which was less than $500 a year ago, once rose to $5,000 this year, with a nearly 400% increase in the past six months. But then China issued a ban on the issuance and trading of virtual currencies, causing a collective plunge in digital currencies, with Bitcoin falling 30% in just two weeks.

"I sold it at about $5,000 or $4,980," said Mike Novogratz. "Then three weeks later, I tried to buy it back at a lower price of about $3,000. If you are good at buying low and selling high, and you are addicted to trading, I recommend you to play this, it is very interesting."

Not only Mike Novogratz, but also JPMorgan Chase CEO Jamie Dimon criticized Bitcoin in mid-month, calling it "a scam" and that the Bitcoin bubble is worse than the tulip bulb craze in the 17th century.

Dimon also said that his daughter became arrogant after making her first fortune in the Bitcoin market and almost ignored him as her father. He emphasized that he would fire any employee who traded Bitcoin, arguing that such transactions during working hours violated company regulations and that these people were "too stupid."

Subsequently, El-Erian, chief economic adviser to Germany's Allianz, believed that the price of Bitcoin and even all digital currencies should be half of the current price, or even fall to one-third to be reasonable.

Citing insiders, US media reported that Mike Novogratz is preparing his own fund of about $500 million, with $150 million from himself and the remaining $350 million from others. This will be the largest fund in the field of digital currency funds. However, he did not respond to the rumors that he would issue a fund, neither denying nor confirming it.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.