Billionaire and Outspoken Crypto Supporter, Novogratz, Announces His Next Move
Mike Novogratz has been an outspoken voice in favor of crypto and has been making calculated moves to build out the community while drawing in support from big names that are already established in the financial sector.
His latest move creates an unlikely partnership but he claims that this will bring “unprecedented transparency” to the crypto markets.
Transparency is what many governments have been trying to establish in the cryptoverse for years, so if the private sector is able to take back some power from governments by setting up transparency first then crypto investors could see surprising advantages to this strategy.
Many crypto investors are invested in crypto mainly to take back some, if not all, control of their own finances from banks and governments so potentially setting up rules and self-regulation before the government is able to get to it could be good for us. We all know that it takes governments quite a while to get anything put together because there is so much red tape to jump through.
Transparency could, also, help bring more investors into the space, as they may trust more in the process and premise behind crypto.
Bloomberg and the Billionaire
The big announcement is that Novogratz has partnered with Bloomberg LP to launch the Bloomberg Galaxy Crypto Index (BGCI). This index will aggregate the performance of a grouping of large-cap crypto.
“Today’s launch of the Bloomberg Galaxy Crypto Index reflects our clients’ growing interest in cryptocurrencies,” said Alan Campbell, Global Product Manager for Bloomberg Indices. “The index brings our rigorous approach to index construction to cryptos and will provide investors with a transparent benchmark to gauge the performance of the broader market.”
The BGCI Index will track ten cryptocurrencies at its launch and plans to weight them based mostly on their market cap. They have said that other factors will go into their weighted model but it’s not clear exactly what those are at this time.
• Bitcoin (30%)
• Ethereum (30%)
• Ripple (14.14%)
• Bitcoin Cash (10.65%)
• EOS (6.11%)
• Litecoin (3.77%)
• Dash (1.67%)
• Monero (1.66%)
• Ethereum Classic (1%)
• ZCash (1%)
Personally, I think that Novogratz, Bloomberg, and other big names on Wall Street are working hard to make cryptocurrency more mainstream and put it on par with the stock market.
Another Big Project
Mike Novogratz is quite a busy man! If you don’t know him and his reputation by now, he is a former hedge fund manager at Fortress Investment Group. Recently, he raised $250 million to establish a cryptocurrency market bank that he plans to publicly list in Canada.
I was expecting other big names on Wall Street to get involved in crypto but wasn’t expecting it to be so quick to happen. Bloomberg gave a very public interview alongside Goldman Sachs CEO this past November where he bashed crypto like crazy. Now, the company is making major moves to contradict their previous views.
Bloomberg isn’t the first to eat his own words, George Soros company did the same thing recently but has publicly stated that they will be pursuing crypto as a likely investment in the near future.
What Does This Mean For Crypto?
I am hesitant to be hopeful now that big money is getting involved in our little sandbox. Big money getting involved could mean that smaller investors could get pushed out of the marketplace by those with more money to throw around.
Or, it could mean that we are all able to grow crypto together and see it thrive, much like early adopters to the stock market.
As much as some people cannot see it, it is possible in America for the “little guy” to make a ton of money and become financially successful even if he (or she) doesn’t have a bunch of money to throw around. The American dream is still attainable if you are smart and willing to put in the work.
I would like to think that this creates a wonderful opportunity to bring more money into the crypto space and educate more people about the wonderful and impressive technology that is being designed and implemented every day. Because crypto isn’t just about money, its about technology and changing the status quo. At least that seemed to be the original dream of Satoshi.
Thanks so much for reading! I would love to hear your thoughts and ideas for where crypto is headed from here.
Helpie is a great community focused on helping each other to grow and learn. Checkout @helpie for more info!
Beep!Beep! @shadow3scalpel & listkeeper @chairborne have your six new veterans, retirees and military members on STEEM. We’ll be patrolling by to upvote your posts (because you are on the list) and we'll answer any questions you leave us. Comment by @shadowspub. This is a opt-in bot.