Michael Novogratz sees a mind shift in cryptocurrencies. 

“There is a mindset shift that suddenly, the US has endorsed Bitcoin,” said Michael Novogratz in his latest interview.  

“It is a vote, and the American people have voted that they like Bitcoin and digital assets,” he added. 

“Washington needs to get off the couch and start doing something. It is an issue for Democrats in this election who have been perceived to be standing in the way. In places like Ohio and Montana in the Senate race, the crypto pact is putting in money,” he said. 

“There is a mindset shift that suddenly, the US has endorsed Bitcoin”

MICHAEL NOVOGRATZ

“You are seeing baby boomers get their first shot. There is  53 trillion dollars of baby boomers ‘ wealth, and they are putting a tiny amount in Bitcoin, and Bitcoiners do not like to sell,” he added. 

Michael Novogratz noted that the holders often measure their wealth with how many Bitcoins they have and not in rapidly depreciating fiat currencies.

“We have a situation where both candidates, Democrats and Republicans want to spend a lot of money. 

The budget came out with a trillion-plus deficit that doesn’t engender a lot of spirit, when it comes to fiscal prudence,” he said.

“Bitcoin has always been a report card on fiscal stewardship,” he added.  

Indeed, going into debt to the tune of 100s of billions of dollars to finance the purchase of yesterday’s weapons to fight today’s wars and losing doesn’t instil confidence in the US world order.

“Bitcoin has always been a report card on fiscal stewardship”

MICHAEL NOVOGRATZ

Moreover, being told by Fed Chair Powell that the trajectory of the public debt is unsustainable.

Why would an investor of sound mind buy US paper?

That is a scary thought because treasury bonds represent the pillar of the Western banking system. So, if the US dollar is propped up, like a three-legged stool, and demand for bonds is waning, and the Saudis decide to price their oil in Chinese Yen and US military prowess turns into a paper tigger, what is keeping the US dollar propped up?

“There are two vectors of Bitcoin; one is macro, and the other is adoption. The current bull cycle is being driven by adoption” – Michael Novogratz

Michael Novogratz sees a mind shift in cryptocurrencies in what could be the greatest transfer of wealth in history

Think about it. If a fraction of US baby boomers ‘ wealth, valued at 53 trillion dollars, is moving into precious metals, cryptocurrencies and stocks, and alternative investments then the current bull market in private assets could be in its infancy. What happens if global wealth, valued at hundreds of trillions of dollars moves out of the US dollar? 

Michael Novogratz sees a mind shift in cryptocurrencies driven by adoption

“There are two vectors of Bitcoin; one is macro, and the other is adoption. The current bull cycle is being driven by adoption. We are running deficits that are at crisis levels,” he said. 

He noted that Bitcoin is in price discovery mode, and there is chatter about an Ethereum ETF.  

Adoption, macro and geopolitics have the potential to drive these assets higher.