Novogratz backs both gold and Bitcoin in a recent interview.
Following the rapid growth of inflation, investors have been considering which asset is the best inflation hedge. While many investors have thrown their weight behind Bitcoin, others still see gold as the ideal financial instrument.
Mike Novogratz, the CEO of Galaxy Digital, recently commented on the debate on whether Bitcoin has replaced the world’s precious yellow metal, gold. In a CNBC interview, Novogratz was asked by Joe Kernen to comment on whether cryptocurrencies, especially Bitcoin, have replaced gold in respect to which asset class is a better store of value.
“At least Bitcoin is at $18,000. Gold is at $1,600. Has gold been replaced by crypto?” Kernen quizzed Novogratz.
"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 Has gold been replaced by crypto?"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
Responding to the question, Novogratz did not heavily throw his weight behind Bitcoin as he has always done. Instead, he believes both Bitcoin and gold will win amid the rising inflation if only financial authorities and the government revert [interest rates].
“… In the long run, gold will win, and bitcoin will win if central banks and governments revert back.”
According to Novogratz, government authorities are already being pressured to stop hiking rates due to its impact on various assets like cryptos.
For Novogratz, things may get worse if the president appoints a Treasury Secretary that may make everyone “scratch their heads.”
“We put smart and confident people in [the Treasury Department]. The moment we put a politician in one of those spots, then it is all over,” Novogratz said.
Novogratz Support for BTC
Novogratz has been a strong supporter of Bitcoin and has always thrown his weight behind the emerging asset. In June, Novogratz said Bitcoin would lead the global financial markets back out of the Fed’s tightening cycle.
However, since Novogratz commented, Bitcoin has been struggling and is currently below $20,000. At press time, Bitcoin is changing hands at $18,931.
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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.