Bitcoin tycoon Novogratz warned investors not to buy Dogecoin


May 3, 2021

Mike Novogratz, the US billionaire investor, lashed out at XRP in a recent interview, saying that XRP's fans are like "fanbase" supporters of President Trump and advising investors not to buy Dogecoin.

The noted bitcoin bull said he isn't worried about the currency's long-term health because institutions like Goldman Sachs and J.P. Morgan are moving into the field. He expects cryptocurrency investments to account for 2% of global wealth within two to three years, up from 0.5% today.

"Over the years, the XRP army has built a community of people who really want to believe in it," Novogratz said, "Reminds me of the Trump supporters who think you stole the election. You can tell them anything. It's like a 9/11 conspiracy theory. The same can be said for cryptocurrencies. They just don't want to see the truth sometimes."

"I never liked XRP because there was one group that owned so much," he said. Not to mention the SEC is looking at the CEO, founder, and a company of issuer."

Asked about his views on Dogecoin, Novogratz said: "No, you shouldn't buy Dogecoin. You should sell Dogecoin. It's now up to 42 cents. But there are a lot of uneducated investors who feel the energy of the moment and want to be part of it."

Speaking about the potential of cryptocurrencies as a new asset class, Novogratz said, "I think cryptocurrencies will outperform equities, but not forever. They will reach balance. There is no such thing as a free lunch. Now, it feels like there is a free lunch because the government has lost everything."

"People want insurance," he said, referring to the possibility of a weaker dollar. Bitcoin is insurance, and the government knows that."

On the long-term negative effects of massive stimulus spending in the United States, Novogratz said: "What Bitcoin is telling the government is, 'Dude, you guys are doing a terrible job with the budget deficit. You're printing money. My mother used to say 'money doesn't grow on trees. '"

Now, money grows on trees.