Galaxy CEO: US Debt Crisis Drives Demand for Bitcoin

Galaxy Digital CEO Mike Novogratz has proposed several measures to prevent a U.S. debt spiral. The executive explained that the U.S. debt crisis makes it “so easy to convince people to buy bitcoin and other hard assets.” He emphasized that implementing these measures could give the U.S. a chance to avoid a “debt death spiral.”

Soaring US Debt Fuels Bitcoin Demand

Galaxy Digital CEO Mike Novogratz took to social media platform X on Wednesday to warn about the growing U.S. national debt. He also outlined a series of proposals aimed at tackling this fiscal challenge.

“What no one wants to hear is that we need to cut government spending pretty drastically,” he began. “We also need to raise taxes on the wealthy some. We also need close loopholes.” The Galaxy Digital CEO stressed: “If we do all this, we ‘might’ have a chance to not have a debt death spiral. Right now it’s $34 trillion. $1 trillion every 100 days. 35, 36, 37…..” The executive added:

It’s why it is so easy to convince people to buy BTC and other hard assets.

Novogratz is a strong bitcoin advocate. He recently predicted that BTC will reach $100K this year and that the cryptocurrency will not fall below $55K again. He noted that there is currently “runaway momentum” in spot bitcoin exchange-traded funds (ETFs) and “tremendous global demand for bitcoin.”

As warnings about the U.S. debt crisis mount, some investors are exploring bitcoin as a potential hedge. In October 2021, Senator Cynthia Lummis praised bitcoin during her speech on the Senate floor as she raised concerns regarding the rising national debt. She has been a bitcoin holder since 2013, seeing the cryptocurrency as a great store of value.

Blackrock CEO Larry Fink said in January that he is now a big believer in bitcoin, noting: “If you’re in a country where you’re fearful of your future, fearful of your government, or you’re frightened that your government is devaluing its currency by too much deficits, you can say this is a great potential long-term store of value. Like I said, it’s like digital gold.” Rich Dad Poor Dad author Robert Kiyosaki has repeatedly warned about the ballooning U.S. national debt, urging investors to buy bitcoin alongside gold and silver. He also predicted an end to the American empire similar to the fall of the Roman Empire.

Do you agree with Galaxy Digital CEO Mike Novogratz’s statements? Let us know in the comments section below. #Write2Earn