Former Goldman Sachs partner and current Fortress Investment Group CIO Michael Novogratz says the smartest guys in the room have all turned their attention to Bitcoin.
In an interview Monday with Bloomberg Television’s Stephanie Ruhle at the 2014 Sohn investing conference, Novogratz explained how Bitcoin has grown to capture the imaginations of programmers from its libertarian roots:
There are in best estimates somewhere 30,000 individual programmers working on Bitcoin. My college roommate lives down in Barbados. He was the smartest guy that we went to school with [Novogratz graduated from Princeton — ed.]. He full time works on derivatives of Bitcoin. So there’s this open source community where there’s huge brain power, let alone all the VC money that’s going in. And so from Marc Andreessen and his company to Benchmark… there’s lots of smart money going in. I’ve never seen a small project with more human capital going into it, and so I kind of want to bet just on that alone.”
Ruhle pressed on him whether Bitcoin could simply flame out. Novogratz responded by saying it would lead to the “democratization of finance.”
I think you’re going to see things like peer-to-peer lending. The banks are — their biggest I think threat is the same thing that’s happened in so many other industries now happening to the finance industry, right? The Internet disintermediates large players and I think Bitcoin is just one of the threats that the finance industry the way we know it has coming against it.
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