Billionaire Mike Novogratz says wave after 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 social media platform X, the CEO of Galaxy Digital says say the US government spends billions of dollars a day just to pay the interest on the country’s burgeoning development $34.230 trillion debt.
“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 EVERY HOUR!!”
Many Bitcoin investors believe that BTC serves as a store of value and hedge against fiat currency degradation. In April 2023, Novogratz said he did not want Bitcoin to reach $1 million “anytime” as this would mean creating instability in the US.
In an accompanying videoNovogratz warns that some of the country’s largest foreign lenders are now less likely to raise U.S. debt through government bonds. He also says the country could soon face financial problems as the government continues to pile up its balance sheet in an environment of high interest rates.
“Traditionally, because we are the reserve currency, anyone will lend you money… 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 US again anytime soon. The Chinese are worried about us, so they are buying fewer and fewer government bonds. The Japanese still own a large portion of our debt, but foreigners want to buy less of our debt. The world is not nearly as united around American leadership as it used to be.
And as interest rates rise, and this is a real problem, so does debt. It’s like a credit card: you borrow $1,000 in credit card debt, and they charge you 21%… That’s $200 a year. You can’t pay that back and it just keeps growing and growing and growing.”
Bitcoin is trading at $49,559 at the time of writing, down marginally over the past 24 hours.
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