“Bitcoin is like digital gold in that gold has value solely because people say it has value; bitcoin is built on an amazing technology, there’s a limited supply of it,” head of Galaxy Investment Partners and former head of the Fortress Investment hedge fund said in an interview on Bloomberg Television.
"Remember, this whole revolution came out of a breakdown in trust, it came out of the '08 financial crisis where people say, 'We no longer trust financial institutions, we no longer trust governments.'"
Novograz said investors coming into the sector for the first time will keep boosting the bitcoin price, as it’s the cryptocurrency they’ve heard of the most.
“Bitcoin is the poster-child of the decentralized revolution,” he said.
Novogratz is one of the market's biggest digital currency bulls and is in the midst of raising cash for a crypto fund that he hopes to reach $500 million.His comments come as Ethereum's price has exploded 4,540 percent higher and Bitcoin is up a comparatively tame 760 percent in 2017.
Bitcoin climbed to a record $8,374 today after Novogratz’s comments. It had earlier tumbled as much as 5.4 percent after $31 million was stolen from a separate cryptocurrency known as Tether.