Mike Novogratz, CEO of crypto investment firm Galaxy Digital, spoke with Grammy-nominated rapper Lil Yachty about the best investments young people can make under current conditions.
As Novogratz explains, “baby boomers” (born between 1946-1964) turned the world upside down a little by starting to print endless money.
According to Novogratz, this cannot go on forever, so governments around the world will eventually “run out of money”. Young people like Lil Yachty should therefore consider “hard assets” like Bitcoin and gold to protect their capital. In addition, the well-known Bitcoin bull recommended that one diversify its portfolio not only in the crypto market, but in the entire financial market.
Novogratz, specifically when asked what a teenager with $ 1,000 or $ 10,000 should invest in said:
“I would just put 20-25% on Bitcoin, buy Bitcoin and forget it. […] I would put 5 or 10% on Ethereum and then put the rest on the stock market. I know the stock market has gone up a lot, but I think it will continue to go higher. […] Bitcoin is probably more secure on a risk-adjusted basis, but very mobile. Ethereum has moved a lot this year, but I think Ethereum has a longer way to go, so it’s a good investment. ”
Novogratz pointed to the DeFi sector of Ethereum, dealing with low-value cryptocurrencies that have more risks but also potentially multiple profit potential. According to the famous CEO, projects in this field, if successful, have the potential to revolutionize the financial sector by replacing JPMorgan and New York Stock Exchange. Accordingly, Novogratz personally put a small portion of his fortune in 5 DeFi tokens:
“Tokens like Aave (AAVE) or Chainlink (LINK) or Compound (COMP), yearn.finance (YFI), Uniswap (UNI), these five are likely to drive the world crazy within the next five years, not the next week or next month. […] They are much more risky, but if they work, they will make a much greater profit. ”
On the topic of Dogecoin (DOGE) popularity, Novogratz said it could be a good “short-term game”. However, he is betting that DOGE will have no value in the future.