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Mike Novogratz Advocates for Bitcoin Amid US Debt Concerns – Crypto News

Published

1 year ago

March 29, 2024

Dripp

Mike Novogratz, the CEO of Galaxy Digital, has highlighted the critical state of the US debt deficit. He emphasized the need for the government to cut its spending noticeably. Novogratz also preached for a higher tax on the rich to solve the problem. He stressed that the issue of sealing up the major cash outflow loopholes is the most significant one. Compliance with these steps should prevent a possible long-term debt crisis.

The financial expert pointed out the staggering growth of the national debt, currently standing at about $34 trillion. This number, as per Mike Novogratz, is growing at a fast pace and will go up to $37 trillion if it is not stopped. Such a financial path would strengthen the argument for investment in Bitcoin or any other assets. The growing burden of debts is likely to stimulate more people and companies to perceive Bitcoin as an attractive asset.

Mike Novogratz Advocates Bitcoin Over Inflating Dollar

Mike Novogratz connects the US’s fiscal problems to the attraction of Bitcoin as an investment. He highlighted the intrinsic attributes of Bitcoin that are in direct contrast to the US dollar. Bitcoin is different from the dollar, which suffers from inflation due to continuous printing, as the former has a capped supply limit of 21 million units. This limitation, he claims, improves the currency’s attractiveness as a hedge against devaluation.

An example of this is the cooperation of Galaxy Digital and Invesco in the management of a spot Bitcoin ETF. The routine purchase of Bitcoin by the ETF adds to the scarcity of the coin. The mechanisms as proposed by Mike Novogratz, alongside Bitcoin’s cap supply, make it a potential asset for the future rise in value. He compares this with the lost purchasing power of the dollar; therefore, he advocates Bitcoin as a reasonable investment.

Companies such as MicroStrategy have been investing in Bitcoin continuously as they perceive it as a protection from currency devaluation. Their repeated buying reflects the stability of Bitcoin as a value store. This is in sharp contrast with the US dollar, which suffers from inflationary tendencies resulting from over-printing. The limited supply of 21 million Bitcoins, with the last to be mined in 2140, underscores its scarcity.

The scarcity of the cryptocurrency is also underlined by the Bitcoin halving event, a mechanism that guarantees a gradual release of Bitcoin in circulation. This mechanism ensures the scarcity of digital currency and makes it attractive as an asset for a long time. These features, according to Mike Novogratz, make Bitcoin a compelling consideration for investors, especially in light of the US’s fiscal issues.