Following the rapid growth of inflation, investors consider which asset is the best hedging instrument. While many investors are throwing their weight behind Bitcoin, others still see gold as the ideal financial instrument. In this article, we will talk about the comments of Mike Novogratz, who is known for his work and presence in the field of crypto money. Here are the details…
Crypto billionaire Mike Novogratz, gold and Bitcoin
Mike Novogratz, CEO of Galaxy Digital, recently joined the debate about whether Bitcoin is replacing gold. In a CNBC interview, host Joe Kernen asked Novogratz to comment on the state of cryptocurrencies, specifically Bitcoin. Specifically, he explained that he was curious about which asset class was the better store of value, whether it was replacing gold. Kernen said, “At least Bitcoin is at $18,000. Gold is at $1,600. Has crypto replaced gold?” said.
Responding to the question, Novogratz did not heavily throw his weight behind Bitcoin as he always does. Instead, he explained that he believes both Bitcoin and gold will win amid rising inflation only if the financial authorities and the US government reduce interest rates. Novogratz used the following statements:
…gold will win in the long run. Bitcoin will win if central banks and governments go back to the way they were.
Novogratz support for Bitcoin
According to Novogratz, government officials are already putting pressure on the cryptocurrency space with their interest rate decisions. According to Novogratz, things could get worse if US President Joe Biden appoints someone to head the US Treasury Department who could make everyone “scratch their heads”. “We placed smart and confident people in the [Treasury Department]. “Once we put a politician in one of these positions, it’s all over,” he said.
Novogratz has been a strong supporter of Bitcoin. It has always threw its weight behind the biggest cryptocurrency. In June, Novogratz said that Bitcoin will pull global financial markets out of the Fed’s tightening cycle. But since Novogratz commented, Bitcoin has been in trouble. It fell below $19,000 the other day. BTC, which managed to stay above $ 19,000 during noon today, seems to have dropped to $ 18,000 again at the time of writing.
The largest cryptocurrency by market cap has lost 15.6 percent in the last seven days, driven by the recent declines. Altcoins following Bitcoin, on the other hand, seem to have recovered slightly in the 24-hour period. Altcoins such as ETH, ADA, SOL experienced an increase of 1-2 percent. However, among the largest cryptocurrencies in general, XRP saw the biggest increase. XRP is up 9%.
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