Bitcoin cop Michael Novogratz believes that every investor should buy cryptocurrencies
"It is almost essential for any investor to have at least 1% to 2% of his portfolio" in crypto, Novogratz, CEO and founder of Galaxy Digital Capital Management, Maggie Lake said Wednesday on Markets Now.
Galaxy and Bloomberg launched the Bloomberg Galaxy Crypto Index (BGCI) on Wednesday. The new index tracks the performance of 1
Novogratz said it was "almost irresponsible" not to invest in Bitcoin.
This is "not necessarily because of all the profits they will make," he said, but because "these technologies will challenge every vertical in two to four years". Novogratz was referring to Blockchain, the underlying technology behind cryptocurrencies.
Blockchain enables companies to conduct near-instantaneous transactions and collect payment data from anyone using the service.
"I'm not saying that will be the decentralized version of Uber Uber," he added. "But it will be a challenge, and it has a real value contribution."
Novograz, formerly hedge fund manager at Fortress Investment Group and Goldman Sachs partner, said in 2017 that it invested 10% of its net assets in digital currencies.
Related: Why the CEO of Nasdaq is bullish on cryptocurrencies
Traditional financial institutions are looking for ways in which traditional investors can bet on Bitcoin. In April, Nasdaq announced a deal with the Cryptocurrency Exchange Gemini Trust. But it is not clear how governments want to regulate the currency and make the future of crypto unsafe.
Novogratz said he predicts that the New York Stock Exchange will be involved in crypto currency trading within six months.
Not everyone sees potential in cryptocurrencies. Well-known investor Warren Buffett has been down against Bitcoin. Berkshire Hathaway ( CEO told CNBC before his company's annual general meeting on Saturday that Bitcoin was "probably the rat poison square". )
The former hedge fund manager shook off Buffett's criticism.
"In many ways this is a millennium-led revolution … what I've found are people with gray hair [are] much more skeptical."
Related: Warren Buffett says Bitcoin is "rat poison"
"Markets Now", with insightful interviews and comments on markets and financial news, streams live off the floor of the New York Stock Exchange every Wednesday at 12.45 pm ET.
Last week, Scott Minerd, managing partner at Guggenheim Partners, announced that "this is the rally you can sell, not buy."
You can watch Markets Now on CNNMoney.com/MarketsNow from your desk or on your phone or tablet. If you can not experience the show live, visit the highlights online and the "Markets Now" newsletter, which appears every afternoon in your inbox.
CNNMoney (New York) First published May 9, 2018: 1:31 pm ET