Bitcoin and Hard Assets Will Win as Inflation Rises, Novogratz Says and Sees BTC at USD 500K

cryptonews.com:

Bitcoin (BTC) and other hard assets will rise strongly in price as the world continues down a path of prolonged and high inflation, argued Mike Novogratz, founder and CEO of major financial services and investment management firm Galaxy Digital.

Speaking at the Bloomberg Crypto Summit on Tuesday, Novogratz stated that he does not believe the world will be done with high levels of inflation any time soon, and warned that we could even see “hyperinflation” going forward.

“We [the US] have debt-to-GDP of over 140%. That almost never ends without a debt restructuring or a hyperinflation,” Novogratz said during the interview at the Bloomberg Crypto Summit in New York City.

Inflation reduces the value of debt in real terms, making it easier for governments to pay it down. That stands in contrast to the conventional way of lowering the debt-to-GDP ratio, which is to grow a country’s economy (GDP) – arguably a more difficult task.

“We had 9% inflation this year, so they did a pretty decent job” of getting rid of some of the debt, Novogratz continued, explaining that with 3% interest rates and 9% inflation, debt is effectively reduced by 6%.

He added that the only way to get out of a situation with a debt-to-GDP ratio of more than 140% is “inflating your way out.” As a result, “hard assets are gonna win,” he said.

“Bitcoin is not the only hard asset. There are plenty of hard assets you should have in your portfolio. But Bitcoin is a unique one, and it is gaining adoption,” Novogratz pointed out, arguing that Bitcoin adoption is spreading.

He added that,

“There will be a generation of people that really believe in [Bitcoin], and are convincing their friends, and their communities, and their institutions that this is a good way to store