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US credit crunch means it’s time to buy gold and Bitcoin: Novogratz

The Galaxy Digital CEO predicts tough times ahead for the U.S. economy, but continues to be bullish on crypto.

The United States is headed for a credit crunch and now is the right time to buy gold, silver and Bitcoin (BTC), says Galaxy Digital founder and CEO Michael Novogratz.

“We are going to have a credit crunch in the U.S. and globally,” Novogratz explained in an interview on CNBC. "You want to be long gold and silver [...] and you want to be long Bitcoin,” he said.

Speaking on CNBC’s Squawk Box on March 15, Novogratz noted that banks typically rebuild capital by lending less, meaning that a credit crunch is imminent, noting that indicators like the commodities market are already pointing to a recession.

The U.S. banking industry fell into turmoil this month, with Silvergate Bank, Signature Bank, and Silicon Valley Bank (SVB) all collapsing in the same week. Moody's downgraded the U.S. banking system outlook to "negative."

Related: Blame traditional finance for the collapse of Silicon Valley Bank

In the interview, Novogratz suggested a reversal in interest rate policy was on the cards, saying that while the Federal Reserve would “like to do a dovish hike, just for credibility’s sale,” doing so would be a “huge policy error.”

Alongside his prediction of tough times for the U.S. economy, Novogratz expressed a bullish sentiment for crypto, saying:

“If there was ever a time to be in bitcoin and crypto, this is why it was created, in that governments print too much money whenever the pain gets too great, and we’re seeing that.”

The price of Bitcoin dipped after the collapse of Silicon Valley Bank last week but managed to reach new 2023 highs of $26,514.72 on March 14, according to CoinMarketCap.

Crypto Stories: Scott Melker tells the story of how he became The Wolf of All Streets

Fiat is in ‘jeopardy’ but Bitcoin, stablecoins aren’t the answer either: Ray Dalio

The hedge fund manager instead wants to see an “inflation-linked coin” be brought to the masses which would serve to ensure consumers secure their buying power.

Billionaire investor Ray Dalio has described fiat currency as being in serious “jeopardy” as an effective store of wealth but doesn’t believe Bitcoin (BTC) and stablecoins will be the solution either.

Dalio, the founder of hedge fund firm Bridgewater Associates explained on CNBC Squawk Box on Feb. 2 that the mass money printing of the United States Dollar and other reserve currencies has him questioning whether they are forms of “effective money.”

“We are in a world in which money as we know it is in jeopardy. We are printing too much, and it's not just the United States, it is all the reserve currencies.”

However, Dalio was quick to add his thoughts on whether Bitcoin was a potential solution, acknowledging that despite what it has accomplished in “12 years,” it is still too volatile to serve as money:

"It's not going to be an effective money. It's not an effective store holder of wealth. It's not an effective medium of exchange," he argued.

He also dismissed stablecoins as an effective form of money as it is a replica of state-backed fiat currency.

Instead, Dalio proposed the creation of an “inflation-linked coin” that would serve to ensure consumers secure their buying power.

“The closest thing to that is an inflation index bond, but if you created a coin that says OK this is buying power that I know I can save in and put my money in over a period of time and transact in anywhere, I think that would be a good coin,” he said.

"So I think you're going to see the development of coins that you haven't seen that probably will end up being attractive, viable coins. I don't think Bitcoin is it," he added.

However, not everyone agreed with Dalio’s take on Bitcoin and the viability of an inflation-linked coin.

Digital asset manager Eric Weiss of Bitcoin for Family Officers was one, who told his 38,300 Twitter followers that such a coin could not exist:

"According to Ray, [Bitcoin] is very close to being the solution to the world's problems but its too volatile. He's waiting for and vaguely describes a solution that doesn't and can't exist," said Weiss.

ARK Invest CEO Cathie Wood also had a different view of Bitcoin, referring to it as a defense against wealth confiscation in parts of the developing world:

“Those populations need a fallback, an insurance policy like Bitcoin,” she said.

Related: Crypto-friendly Ray Dalio steps back from Bridgewater’s $150M fund

Dalio’s latest views on Bitcoin come despite recently labeling it “one hell of an invention” that could serve as a viable inflation hedge. However, these remarks were made on Jan. 28, 2021 — before the current bear market took effect.

The billionaire investor has also previously recommended BTC should make up 1-2% of an investors portfolio on Jan. 6, 2022.

As an investment product, the hedge fund manager said in May. 24, 2021 that he would rather buy BTC over bonds but later stated on Aug. 5, 2021, that he still prefers gold.

On Oct. 4, Dalio stepped down as a co-chief investment officer, but remained on board as a mentor.

Crypto Stories: Scott Melker tells the story of how he became The Wolf of All Streets

South African Government to Add Crypto Entities to ‘List of Accountable Institutions’

South African Government to Add Crypto Entities to ‘List of Accountable Institutions’According to the South African government, crypto entities — or businesses whose activities include the exchange or transfer of crypto assets — are set to be included in the list of so-called accountable institutions starting Dec. 19. Businesses that convert one crypto asset to another or that conduct transactions where a crypto asset is transferred […]

Crypto Stories: Scott Melker tells the story of how he became The Wolf of All Streets

IMF Blog: Better Regulation of Africa’s Growing Crypto Market Urgently Needed

IMF Blog: Better Regulation of Africa’s Growing Crypto Market Urgently NeededA well-regulated African cryptocurrency market is needed in order to protect users as well as help countries stop bad actors from using digital assets to circumvent capital controls, the latest post on the IMF blog has said. The blog post reiterated the IMF’s belief that risks to a country are “much greater if crypto is […]

Crypto Stories: Scott Melker tells the story of how he became The Wolf of All Streets

Lebanese Mint, Keep, Spend Crypto Amid Crisis, Report Unveils

Lebanese Mint, Keep, Spend Crypto Amid Crisis, Report UnveilsLiving in the chaos of a deep crisis, people in Lebanon have been turning to cryptocurrency, a new media report has confirmed. From earning much needed income through mining and work, to storing wealth and paying in stores, bitcoin, tether and other cryptos have started to push aside the hyperinflated Lebanese pound and the hard-to-get-hold-of […]

Crypto Stories: Scott Melker tells the story of how he became The Wolf of All Streets

Former Fed Chair Alan Greenspan Says Decreasing Supply of Greenbacks Makes the US Dollar a ‘Better Store of Value’

Former Fed Chair Alan Greenspan Says Decreasing Supply of Greenbacks Makes the US Dollar a ‘Better Store of Value’On Nov. 2, 2022, the American economist and 13th chairman of the U.S. Federal Reserve, Alan Greenspan, published an opinion editorial that says he envisions a monetary “tailwind” for the U.S. dollar next year. Greenspan expects this to happen even if the Fed decides to pivot its restrictive monetary policy to lower rate hikes or […]

Crypto Stories: Scott Melker tells the story of how he became The Wolf of All Streets

Report: Turkey’s September Gold Imports up by 1,700% as Individuals Swap Falling Lira With the Precious Metal

Report: Turkey’s September Gold Imports up by 1,700% as Individuals Swap Falling Lira With the Precious MetalTurkey’s gold imports of just over 39,000 kilograms in September 2022 are more than 16 times the quantity that was brought into the country in September 2021. The surge in Turkey’s gold imports is reportedly being spurred by the rise in demand for the precious metal by individuals and entities using it in foreign currency […]

Crypto Stories: Scott Melker tells the story of how he became The Wolf of All Streets

Cryptocurrency as Money — Store of Value or Medium of Exchange?

Cryptocurrency as Money — Store of Value or Medium of Exchange?**The following article was written by Kristoffer Mousten Hansen and Karras Lambert and published on September 28, 2022. Cryptocurrency as Money — Store of Value or Medium of Exchange? was originally published on mises.org. The opinions expressed in this article are the authors’ own. Bitcoin.com is not responsible for or liable for any opinions, content, […]

Crypto Stories: Scott Melker tells the story of how he became The Wolf of All Streets

Here’s How Bitcoin Can Reach $10,000,000 per BTC, According to Crypto Researcher

Here’s How Bitcoin Can Reach ,000,000 per BTC, According to Crypto Researcher

The crypto world is abuzz after a chart predicting an astronomical Bitcoin (BTC) price made the rounds on social media. Documenting Bitcoin shared with their 799,700 Twitter followers a chart listing store-of-value assets, making the case that BTC could perhaps reach a price tag of $10 million. The crypto enthusiast says, “Bitcoin has the potential […]

The post Here’s How Bitcoin Can Reach $10,000,000 per BTC, According to Crypto Researcher appeared first on The Daily Hodl.

Crypto Stories: Scott Melker tells the story of how he became The Wolf of All Streets

Bloomberg Analyst Says Says One Ethereum Competitor To Outlast the Rest, Makes Huge Long Term Bitcoin

Bloomberg Analyst Says Says One Ethereum Competitor To Outlast the Rest, Makes Huge Long Term Bitcoin

Senior Bloomberg Intelligence analyst Mike McGlone says that one prominent Ethereum (ETH) challenger is on its way to prevailing over other ETH competitors. In a new Crypto Outlook report, McGlone says that smart contract platform Solana (SOL) is outpacing other so-called “Ethereum killers,” which should result in SOL securing its spot in the top five […]

The post Bloomberg Analyst Says Says One Ethereum Competitor To Outlast the Rest, Makes Huge Long Term Bitcoin appeared first on The Daily Hodl.

Crypto Stories: Scott Melker tells the story of how he became The Wolf of All Streets