In a recent public rant, Elon Musk addressed the ongoing inflation issue, pointing to excessive government spending and the Federal Reserve’s monetary policies as the main culprits. He said that cutting down on wasteful government spending is the best way to tackle inflation.
This view is pretty common, but it received a surprising endorsement from Mike Novogratz, a big name in the crypto space. Novogratz, who has been a strong supporter of Bitcoin (BTC) and other digital assets, responded to Musk’s statement, pointing out that it affects people on both sides of the political spectrum.
He believes that Bitcoin, along with other real assets like gold and silver, will continue to be valuable because the government is unlikely to address entitlement programs, such as Social Security and Medicare.
This is the most bi-partisan thing that @elonmusk has said in a while!!!
Given my belief that neither party will touch entitlements (social security and Medicare) I firmly believe that $BTC will be a good asset to own. Same with gold, silver and other real assets. https://t.co/WVkn2Xj5PZ
— Mike Novogratz (@novogratz) August 16, 2024
Common sense or popular critique?
Interestingly, this sentiment is becoming more common among leading voices on the financial markets.
Some, like Robert Kiyosaki, known for his bestselling book “Rich Dad Poor Dad,” use stronger words, denigrating the government and calling the dollar a “fake” currency. Others, like Musk or Novogratz, support the dollar but discredit the policies implemented by the Fed.
The outcome, however, does not depend on opinion, with a recession probably already here and inflation falling amid rumors of rate cuts. What happens next is an open question, as always, but this time, Bitcoin is taking center stage as an alternative safe haven to gold. Peter Schiff, though, does not think so.
