Following the rapid growth of inflation, investors consider which asset is the best inflation hedge. While many investors are turning to Bitcoin, others still see gold as the ideal financial instrument.
Mike Novogratz, CEO of Galaxy Digital, recently expressed his thoughts on the popular debate over whether Bitcoin is replacing gold. a CNBC in his interviewNovogratz was asked to comment on whether cryptocurrencies, specifically Bitcoin, are replacing gold as a better store of value.
“At least #Bitcoin is at $18,000. Gold is at $1,600. Has gold been replaced by crypto?” @JoeSquawk asks @novogratz: pic.twitter.com/K04dpRc9B0
— Squawk Box (@SquawkCNBC) September 20, 2022
Answering the question, Novogratz did not choose a clear side. Instead, he said he believes both Bitcoin and gold will win amid rising inflation only if the financial authorities step back on interest rates.
“In the long run, gold will win and Bitcoin will win if central banks and governments go back to normal.”
According to Novogratz, government officials in the US are already pressuring to stop interest rate hikes due to its impact on various assets such as cryptos.
Novogratz Support for Bitcoin
Koinfinans.com As we have reported, Novogratz has been a strong supporter of Bitcoin and has always made this clear. In June, Novogratz said that Bitcoin will pull global financial markets out of the Fed’s tightening cycle.
However, since Novogratz commented, Bitcoin has been struggling in terms of price and is currently below $20,000. At press time, Bitcoin is trading at $18,931.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.