In the wake of a startling revelation regarding the ever-increasing national debt of the United States, billionaire investor Mike Novogratz has passionately urged investors to take action by considering the purchase of Bitcoin (BTC). Novogratz, a well-known figure in the financial world, believes that Bitcoin can serve as a vital hedge against the potential consequences of this mounting debt.
Mike Novogratz Says Bitcoin is a Hedge Against Inflation
Moreso, the revelation of the escalating debt has sent shockwaves through the financial markets, prompting investors to seek alternative investment strategies to safeguard their wealth.
Novogratz, with his vast experience and success in the investment realm, sees Bitcoin as a powerful tool to counteract the potential consequences of the mounting national debt, as it is not subject to the same vulnerabilities and risks associated with traditional fiat currencies.
Furthermore, the increasing national debt of the United States, coupled with the unprecedented levels of stimulus measures being implemented, has raised concerns about the potential erosion of the value of the US dollar. In this context, Novogratz views Bitcoin as a store of value that can provide protection against inflation and serve as a safe haven asset.
US National Debt on the Rise
Meanwhile, Novogratz’s call to action comes after Charlie Bilello, chief market strategist revealed that the national debt had surged above $1 trillion since the suspension of the debt ceiling just last month. The figures provided by the market strategist also revealed that the public debt currently stands at $32.47 trillion as of the first week of July.
Undoubtedly, this overwhelming amount exceeds the maximum borrowing limit of $31.4 trillion, which was outdated by a law signed in early June. however, the legislation has eliminated the debt ceiling temporarily until January 1, 2025, while ensuring a reduction of $1.5 trillion in the U.S. budget deficit over the next ten years.
Will US President Protect Investors in Debt Deal Talks
Recall that in May, United States President Joe Biden refused to strike a debt deal with Republican leaders that will protect crypto investors. He expressed that he has no intention of willingly befriending or protecting crypto-related entities through tax-loss harvesting.
Also, Biden mentioned that his administration has no intention to default on their loan obligation. As such, he has recommended a proposal that will cut their spending by more than a trillion dollars.