Dogecoin strategist Mike Novogratz, CEO of crypto investment firm Galaxy Digital, former hedge fund manager and billionaire, said Bitcoin is a safeguard against dollar inflation, and governments are aware of this state of affairs of the asset.
“Governments are aware of Bitcoin’s insurance potential”
Speaking on the podcast “Earn Your Leisure”, Novogratz said people are looking for insurance and the dollar does not act as insurance because more money is printed.
According to the billionaire, Bitcoin’s steady supply is a lesson to the government on printing excessive money in managing the budget deficit.
He states that incentive spending will have a negative impact on the dollar and the economy in the long run.
“People want insurance. Bitcoin is insurance, and governments know that. What Bitcoin is telling governments is, “Dude, you guys are doing a terrible job with your deficits. You print money. My mother used to say money doesn’t grow on trees. Right now money is growing in trees. ”
Novogratz advises investors to sell Doge
Providing information about various digital assets during the podcast, Novogratz warned investors against buying Dogecoin. He advises investors to learn more about the asset and sell it when the price rises.
According to data provided by CoinMarketCap, at the time of this article, DOGE was trading at $ 0.36, up 17% in the last 24 hours. The price increase followed tweets by Tesla CEO Elon Musk and billionaire Mark Cuban showing support for the asset.
Novogratz has stated in the past that the recent Dogecoin surge was a retail phenomenon inspired by more money supply to the economy. As a result, he warned investors against comparing the Doge rally to Bitcoin. According to Novogratz:
“It is very wrong to compare Doge with Bitcoin or other cryptocurrencies. The amount of CAPEX and OPEX spent on keeping the Bitcoin network decentralized and running year after year is enormous. Doge is a dog, there is no pun. ”
Also, Novogratz stated that as the crypto industry matures, investments will account for at least 2% of global wealth in two to three years.