At first glance, when the CIO of Fortress Investment Group says:
“Put a little money in Bitcoin…Come back in a few years and it’s going to be worth a lot.”
One might think, the firm that manages $54.6 billion is advocating the end of the USD as we know it… Or is this more muppetry at work?
“Put a little money in Bitcoin,” Novogratz, principal and co-chief investment officer of macro funds at Fortress, said at a conference held today in New York by UBS AG’s chief investment office. “Come back in a few years and it’s going to be worth a lot.”
Novogratz said he sees Bitcoin growing as a payment system, especially in developing nations. Novogratz said he has put his own money in the virtual currency, without specifying how much. He has not invested in Bitcoin on behalf of Fortress, which managed $54.6 billion as of June 30.
“I have a nice little Bitcoin position,” Novogratz said. “Enough that I’m smiling that it doubled.”
However, color us a little skeptical at his advice…
Given that Bitcoin may ultimately make firms like Fortress – that rely on fiat specie – redundant, then doesn’t the endorsement of Bitcoin by one of the world’s largest Private Equity firms reek of the ultimate failure of BTC as a monetary construct, and seem much more to be merely an attempt by the firm to herd even more momentum chasers into a trade (ostensibly one for Novogratz P.A.) that will be then unwound with Bitcoins ultimately converted into the same dollar they are supposed to replace?