Mike Novogratz says he can think of 34 trillion reasons to believe in Bitcoin – here's what he means
Billionaire Mike Novogratz says the wave of US debt accumulation gives him 34 trillion reasons to have unwavering confidence in the future of Bitcoin (BTC).
In a new post on the social media platform
“I can think of 34 trillion reasons to believe in BTC… America spends over $2 billion every day on interest payments alone. That’s over $83 million an hour!!”
Many Bitcoin investors believe that BTC serves as a store of value and a hedge against the devaluation of fiat currency. In April 2023, Novogratz said he did not want Bitcoin to reach $1 million “anytime soon” because it would mean instability had occurred in the United States.
In an accompanying video, Novogratz warns that some of the country's largest foreign lenders are now less eager to accumulate U.S. debt through Treasury bonds. He also says the country could soon experience financial problems as the government continues to pile up its balance sheet in a high interest rate environment.
“Traditionally, everyone will lend you money because we are the reserve currency… There is a lot of trust in America – so the Chinese, the Middle East, the Russians.”
But suddenly we imposed sanctions on the Russians and the Russians [are] I will never lend money to the USA in the short term again. The Chinese are worried about us and are therefore buying fewer and fewer government bonds. The Japanese still own much of our debt, but foreigners want to buy less of our debt. The world is not nearly as united as it once was when it comes to U.S. leadership.
And when interest rates go up, and that's really a problem, debt payments go up. It's like a credit card: you borrow $1,000 in credit card debt, and they charge you 21%. That's $200 per year. You can’t pay that back and it just grows, grows and grows.”
Bitcoin is trading at $49,559 at the time of writing, down slightly in the last 24 hours.
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