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Billionaire Mike Novogratz says that wave after wave of US debt accumulation is giving him 34 trillion reasons to have unwavering confidence in the future of Bitcoin (BTC).
In a new post on the social media platform X, the Galaxy Digital CEO says the US government is shelling out billions of dollars per day just to pay the interest on the country’s burgeoning $34.230 trillion debt.
“I can think of 34 trillion reasons to believe in BTC… America is spending over $2 billion every day on interest payments alone. That’s over $83 million EVERY HOUR!!”
Many Bitcoin investors believe that BTC serves as a store-of-value asset and a hedge against fiat currency debasement. In April 2023, Novogratz said that he did not want Bitcoin to hit $1 million “anytime soon” as it would mean that instability in the US has set in.
In an accompanying video, Novogratz warns that some of the country’s largest foreign lenders now have a reduced appetite to accumulate US debt via Treasuries. He also says the country may soon witness financial issues as the government continues to pile onto its balance sheet amid a high interest rate environment.
“Traditionally, because we’re the reserve currency, everyone will lend you money… There’s a lot of confidence in America – so the Chinese, the Middle East, the Russians.
But all of a sudden, we put sanctions on the Russians and the Russians [are] never going to lend money to the US again in the short run. The Chinese are worried about us, so they’re buying less and less Treasuries. The Japanese still own a lot of our debt but foreigners want to buy less of our debt. The world is not nearly as unified around US leadership as it used to be.
And as interest rates go higher, and this is really a problem, the debt payments go higher… It’s like a credit card: you borrow $1,000 of credit card debt, and they charge you 21%… That’s $200 a year. You can’t pay that back and it just keeps growing, growing and growing.”
Bitcoin is trading for $49,559 at time of writing, a marginal decrease during the last 24 hours.
Generated Image: DALLE3
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