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Former Fortress hedge fund manager Michael Novogratz says the $8 billion Valuation of Coinbase Proves Cryptos are Not 'Tulips'.

Novogratz, whose cryptocurrency-focused merchant bank Galaxy Digital went public on a Canadian stock exchange in August, predicted major institutional money in bitcoin by next year.

"You're going to see pensions and endowments come in, or I will literally come back next year, and wear no shoes," Novogratz said.

No Shoes?

What a joke. How about no clothes in a march down Times Square?

Clothing aside, Novogratz presented the silliest argument imaginable as to why cryptos cannot be in a bubble: Price

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By the exact same rationale, someone could have made this claim "Tulips are not in a bubble because someone agreed to pay $10,000 (or whatever) for a bulb".

In 2000, one might have stated "Global crossing is not in a bubble because people believe in the valuation." The company went to zero.

Reflections on Price

Price can never offer proof that something is not in a bubble. Rather, it's the opposite. Absurd valuations can and do suggest bubbles are in place.

I do not even believe Novogratz believes what he said. Rather, I view his statements are a stunt.

But who knows? There are lots of fools who made a lot of money and lots of brilliant PhDs who didn't.

Mike "Mish" Shedlock