Mike Novogratz warns that the US’s continued debt accumulation Bitcoin He stated that it helped him to have unshakable confidence in the future of the price.
In a new article published on X, Galaxy Digital CEO stated that the US government spends billions of dollars a day just to pay the interest on the country’s $34,230 trillion debt.
Many Bitcoin investors believe that BTC serves as a store of value and a hedge against depreciation of fiat currencies. Novogratz stated in April 2023 that he did not want the BTC price to reach $1 million “any time soon” because this would mean instability had begun in the United States.
In the accompanying video, Novogratz warns that some of the nation’s largest foreign creditors now have less appetite for accumulating U.S. debt through Treasuries. He also says that the country may soon witness financial problems as the government continues to expand its balance sheet in a high interest rate environment.
“Traditionally, everyone lends money to you because it is a reserve currency. There is a lot of trust in America. I mean, people like the Chinese, the Middle Easterners, the Russians…
But suddenly we started imposing sanctions on the Russians, and in the short term the Russians would never lend money to the United States again. The Chinese are worried about us, so they’re buying less and less Treasuries. The Japanese still own a large portion of our debt, but foreigners want to buy less of it. The world is not as united around US leadership as it once was.
As interest rates go up, and this is a real problem, debt payments go up… It’s like a credit card: you take out $1,000 in credit card debt and they charge you 21%… That’s $200 a year. “You can’t pay it back, and the debt just keeps growing and growing and growing.”
