Bitcoin’s Moment: A Hedge Against Economic Turmoil


In a recent interview on CNBC’s Squawk Box, Michael Novogratz, the founder, and CEO of Galaxy Digital, predicts that the United States is heading towards a credit crunch, and the time is ripe for investors to buy gold, silver, and Bitcoin. Novogratz noted that banks typically rebuild capital by lending less, indicating that a credit crunch is imminent. The commodities market is also pointing towards a recession.

Bitcoin was created as a decentralized digital currency that is not controlled by any central authority or government. Its genesis block was mined in 2009 by Satoshi Nakamoto, whose identity remains a mystery. It is designed to operate as an alternative to fiat currencies, and many consider it to be a hedge against inflation.

Novogratz suggests that now is the time for investors to be in Bitcoin and crypto. He believes that Bitcoin was created for moments like these when governments print too much money, and the economic pain gets too great. With the US banking industry in turmoil and Moody’s downgrading the US banking system outlook to “negative,” Novogratz believes that Bitcoin can be a hedge against economic turmoil.

Bitcoin’s price has been volatile in recent years, but it has consistently rebounded and surged to new highs. It dipped after the collapse of Silicon Valley Bank but managed to reach new 2023 highs of $26,514.72 on March 14, according to CoinMarketCap.

Novogratz’s prediction of tough times for the US economy may seem daunting, but investors can take advantage of Bitcoin as a hedge against economic uncertainty. The cryptocurrency was created to be decentralized and resistant to inflationary pressures, making it an attractive option for those looking for a hedge against economic turmoil.

As governments around the world print more money and the economic outlook remains uncertain, Bitcoin’s moment may be here. It offers an alternative to fiat currencies and has consistently rebounded from price drops in the past. With its decentralized nature and resistance to inflation, it is an attractive option for those looking to protect their wealth in turbulent times.


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