Bitcoin is a “great” alternative to fiat for residents of countries that have inefficient monetary policies. This was stated by the founder of the Galaxy Digital cryptobank Mike Novogratz in an interview with CNBC.
“When there’s bad stewardship of economies, #Bitcoin provides a great alternative,” says @novogratz on #crypto. “If you were in Russia, you would feel pretty stupid having all of your money in rubles.” pic.twitter.com/x10KP3KuCy
— Squawk Box (@SquawkCNBC) March 17, 2022
According to Novogratz, if Fed and the US Treasury were able to cope with rising inflation and pay off the country’s external debt, Americans would not have to buy cryptocurrency.
“If you lived in Turkey, you would feel extremely stupid to keep all your savings in lira. When inefficient economic policies are being pursued – and our policy was not the best, let’s not hide – bitcoin is an excellent alternative, ”he emphasized.
Novogratz also noted that bitcoin is unlikely to be used for payments. He views the asset as a store of value.
Earlier in an interview Bloomberg the millionaire called the freezing of Russia’s gold and foreign exchange reserves under sanctions “the most important event in the last ten years.” In his opinion, the actions of the US, the EU and their allies will force the world to reconsider its attitude towards the dollar.
“This means that the US dollar or Treasury bonds, which are considered to be risk-free assets, are not so risk-free. You are at risk if you are Russian or maybe Chinese. It’s not safe for you,” he explained.
According to him, in the future the monetary authorities will seek to back their reserves with a basket of assets. It can include dollars, gold and cryptocurrencies, he added.
The head of Galaxy Digital believes that against the backdrop of an increase in the Fed’s interest rate, one should not expect an “aggressive” growth in bitcoin quotes. Nevertheless, the millionaire predicts that in five years digital gold will cost $500,000.
Recall that in January, Novogratz offered gold supporter and bitcoin skeptic Peter Schiff a $1 million bet on the price of bitcoin.
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