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Mike Novogratz, the cofounder and chief executive officer (CEO) of Galaxy Digital, has shared another hot take on why he believes owing Bitcoin (BTC) as an asset class is essential.
Debt spiral analogy and Bitcoin
According to Mike Novogratz, the state of the United States debt deficit is notably alarming. He said that what many do not want to hear is how the government needs to cut its spending drastically while levying heavy taxes on the wealthy class.
Gamza KhanzadaevHe said any major loophole through which cash is reduced also needs to be covered. He said if these recommendations are done the right way, America may get to prevent slipping into a debt death spiral in the long term. He pointed out that the current government debt is pegged at about $34 trillion, a figure that grows every 100 days.
If left unchecked, Mike Novogratz is convinced the debt may soar as high as $37 trillion without an end in sight. The financial guru noted that this debt challenge makes it easier to convince anyone to buy Bitcoin or other assets.
Case for Bitcoin
Bitcoin is considered a major hedge against currency devaluation and a store of value, accounting for why firms like MicroStrategy Incorporated have continued buying the cryptocurrency at every opportunity it gets.
Rather than the U.S. Dollar, which is being printed indiscriminately, Bitcoin has a maximum supply of 21 million. This sum is emitted in bits, and the last Bitcoin will not be mined until 2140, owing to the provisions encoded in the BTC halving event. This makes the digital currency a very scarce commodity overall.
Galaxy Digital and Invesco co-own a spot Bitcoin ETF, a product that also contributes to the scarcity of Bitcoin through intense, regular accumulations. In all, Mike Novogratz implied that, unlike the USD, which is being devalued, these fundamentals might help Bitcoin gain more traction this year and in the long run.
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