Late last year, Fortress Investment Group executive-turned-new age currency enthusiast Mike Novogratz confidently announced that bitcoin could “easily” be worth $40,000 by the end of this year. Well, the year’s got less than three months to run and the shit’s trading for about $6,500, and the former competitive wrestler is tapping out on the prediction, replacing it with a new one: “Bitcoin will be worth less at the end of 2018 than it was when I predicted it would be worth six times as much as it actually is.”
“I don’t think it breaks $9,000 this year,” Novogratz said on stage at the Economist Finance Disrupted event in Manhattan Tuesday.
Novogratz, who predicted last year that the cryptocurrency could swell to $40,000 in 2018, said it will take until the first two quarters of next year for bitcoin to move above $10,000.
It seems Mike didn’t precisely foresee the 80% swoon in crypto values when planning the purchase of his next private island with imaginary money last year. Now that he’s terribly discouraged. For one, the new prediction is one he’d be happy to get wrong, and for another, bitcoin is still going to make him rich(er), just a little more slowly.
Novogratz said Tuesday that meaningful institutional investors’ money will make its way to cryptocurrencies by 2019 and predicted a return of the same “FOMO,” or “fear of missing out,” that pervaded as bitcoin neared $20,000 last year.
We decided to experiment with a digital currency of our own: WSJCoin, a virtual token for the newspaper industry.
Traveling to Japan, a hotbed for cryptocurrencies, we found that creating a coin is relatively easy: Find a blockchain startup, watch the founder type some code on a screen and a cryptocurrency is born. No wonder there are more than 2,000 of them, according to CoinMarketCap.
Names familiar to the trading world, including retail brokerage TD Ameritrade Holding Corp. and high-speed trading giant Virtu Financial Inc., are backing an exchange called ErisX, which plans to trade cryptocurrencies and related derivatives, according to the companies. ErisX is expected to announce its new business plan Wednesday.
Separately, another derivatives exchange, trueEX LLC, on Wednesday announced plans to launch a bitcoin swap.