Bitcoin is a ‘great’ alternative to fiat for residents of countries that pursue ineffective monetary policy, said Galaxy Digital founder 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 the ФРС and the US Treasury could tackle rising inflation and pay down the country’s external debt, Americans would not have to buy cryptocurrency.
«If you lived in Turkey, you would feel extremely stupid keeping all your savings in the lira. When ineffective economic policy is in place — and our policy has not been the best, to be sure — Bitcoin represents an excellent alternative», — he noted.
Novogratz also noted that Bitcoin is unlikely to be used for payments. He regards the asset as a store of value.
Earlier in an interview with Bloomberg the billionaire called Russia’s freeze on its gold and foreign-exchange reserves under sanctions “the most important event in the last ten years.” In his view, the actions of the US, the EU and their allies will force the world to rethink its stance toward the dollar.
“This means that the US dollar or the treasury bonds, which are generally considered risk-free assets, are not that risk-free after all. You are taking a risk if you are Russian or perhaps Chinese. For you, it is unsafe,” he explained.
He said that, in the future, monetary authorities will back their reserves with a basket of assets. It could include dollars, gold, and cryptocurrencies, he added.
The head of Galaxy Digital believes that, against the backdrop of Fed rate hikes, one should not expect ‘aggressive’ gains in Bitcoin’s price. Nevertheless, the billionaire forecasts that in five years digital gold will be worth $500,000.
In January, Novogratz offered gold advocate and Bitcoin skeptic Peter Schiff a a bet of $1 million on the price of Bitcoin.
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