Bitcoin’s rising price brings the prospect of increased government scrutiny, but governments aren’t going to have an easy time regulating bitcoin, Michael Novogratz, CEO of Galaxy Investment Partners, told CNBC in a recent “Power Lunch” interview.
Novogratz, a former hedge fund manager at Fortress Investment, is creating a $500 million fund to invest in cryptocurrencies. He said it is not likely that governments will be able to dismantle bitcoin should they attempt to do so.
Bitcoin Could Hit $25,000
Given bitcoin’s recent gains, Novogratz said he can see the cryptocurrency price getting as high as $25,000, alarming government officials. He noted that regulators in many countries, including the U.S., are working with digital currency and find it intriguing.
Novogratz said bitcoin is in a “speculative frenzy” phase that is global.
Autonomous Next, a financial research firm, reported that at least 171 “cryptofunds” have launched, including 123 in 2017 alone.