Mike Novogratz: People are Shifting their Mindset and Seeing Bitcoin as a Safer Haven Amid Bank Failures

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Mike Novogratz’s partying antics led to his departure from Goldman Sachs. 

Or, as he puts it. “partying like a rockstar.”

He’s a free spirit 

And he has a taste for risk and adventure.

I’m still trying to decide if Novogratz falls under the tag of a rebel or a maverick. 

One particular incident during his time in the Army stands out. 

His helicopter sustained severe damage when enemy fire hit his aircraft during a mission in the Middle East. 

Novogratz managed to land the helicopter and get his crew to safety. The incident earned Novogratz the Distinguished Flying Cross, one of the highest honours awarded to U.S. military pilots.

Unlike many ex-pilots, he became a prominent hedge fund manager and is currently CEO of Galaxy Investment Partners, which focuses on investments in cryptocurrency.

Novogratz’s unconventional mindset continues. He claims to be the only guy with Bitcoin and Luna Tattooed on his body.

I’m confident the Luna tattoo is a regret. 

A few weeks after getting the Luna Tattoo, Luna lost all of its value after a prominent holder un-staked their coins, causing a death spiral and massive sell-offs.

Luna claimed to be an algorithmic stablecoin pegged to the U.S. Dollar, proving anything but stable.

It’s now officially gone to cryptocurrency heaven.

Novogratz has previously stated that 20% of his net worth was in Bitcoin and Ethereum and said he made $250 million from cryptocurrency investments. 

He’s now saying that we’re heading for a recession, and in a recent shift in mindset, people have gone from viewing Bitcoin as a ‘risk on’ asset to a safe haven amid bank failures. 

Buckle up, strap yourself in and let’s get into it. 

 

Bitcoin Was Created for a Crisis. 

Mike Novogratz suggests this is the best time to invest in Bitcoin and other cryptocurrencies since the Federal Reserve prints more money when the economy does badly.

Bitcoin is similar to gold since it’s not associated with any government or central authority, making it a decentralised asset. 

As a result, political or economic events don’t impact it in the same way as traditional investments like stocks or bonds.

 

Mike Novogratz – Source

“The commodity and oil markets indicate a looming recession and credit crunch in the U.S. and globally. This is why now is a good time to invest in Bitcoin and crypto. The Fed prints more money whenever things get to this point, and we’re seeing that. 

If there was ever a time to be in Bitcoin and crypto, this is why. Bitcoin has been called ‘digital gold’ because, like gold, it’s not tied to any government or central authority. 

It’s decentralised, which means it’s not subject to the same risks as traditional assets like stocks or bonds that economic and political events can impact.”

 

Like gold, Novogratz suggests that Bitcoin can serve as a haven during economic uncertainty.

But, unlike gold, Bitcoin has several advantages as an investment. For one, it’s easier to store and transport than gold. Additionally, it’s accessible to a broader range of investors, regardless of their net worth. 

It means that anyone can invest in Bitcoin and do so from anywhere in the world.

 

Mike Novogratz – Source

“In this environment, if you believe there’s a looming credit crunch, I think you want to be long on Bitcoin. 

It’s a bunker trade and can serve as a safe haven in uncertain economic times. Gold has traditionally been seen as a safe haven, but Bitcoin has some advantages over gold as an investment. 

For one thing, it’s easier to store and transport than gold. It’s also more accessible to a wider range of investors. With Bitcoin, you don’t need to be a high-net-worth individual to invest.

You can buy as much or as little as you want, and you can do it from anywhere in the world.”

 

Novogratz suggests that the Fed’s policy shift may cause the stock market to drop before potentially bouncing back.

Bitcoin is an attractive investment option in this environment of economic uncertainty because it is not tied to the same risks as traditional assets like stocks.

Bitcoin’s limited supply means its value could increase over time, which is different from fiat currency that central banks can print at will, leading to inflation.

 

Mike Novogratz – Source

“The Fed’s shifting policy will likely cause stocks to go down at first, then bounce back. Powell’s got a tough job, and just two weeks ago, he was talking about raising rates to 6% or higher. 

This uncertainty is another reason Bitcoin can be a good investment right now. 

Bitcoin is an alternative to traditional assets like stocks, and it’s not tied to the same risks. 

If stocks go down, Bitcoin could rise as investors seek out alternative investments. Bitcoin is also limited in supply, meaning its value can increase over time. It differs from fiat currency, which can be printed at will by central banks, leading to inflation.”

 

Final Thoughts

I prefer that my blog be a shill-free zone.

But Novogratz is right. If you’ve been around crypto long enough, you’ll feel your spidey senses telling you that sentiment is changing. 

How weird. 

People are losing trust in the fractional reserve banking system, which has changed our views on risk. 

Bitcoin has yet to skip a beat, sentiment is changing, and the masses might see it as a lifeboat. 

That rescues us all.