Jack Mallers, the CEO and creator of Strike, a payment platform focusing on Bitcoin [BTC], has advised investors holding U.S. dollar savings to exercise caution as the Federal Reserve begins its cycle of easing policies.
According to Mallers, the infusion of liquidity by the Fed, also known as money printing, will lead to a devaluation of USD-based savings, diminishing their worth.
He suggested that individuals saving in USD would find better protection in BTC, labeling it as the escape route for everyone.
“With the Fed initiating rate cuts, what does this signify? The financial authorities have chosen their victims: those who are relying on US dollars. It’s time to exit dollars. #Bitcoin presents itself as the exit solution for all.”
Anticipated Boost in BTC Due to Fed’s Easing Policies
Mallers also mentioned that the Fed’s money printing will likely give a push to assets like BTC in the long run, contrasting with the fate of USD savings.
“More money being printed does not equate to more growth. In reality, it undermines the worth of the currency holders. As a result, individuals dependent on the USD will witness a decline in their quality of life over the coming years. The beneficiaries will be those capable of investing in assets such as Bitcoin.”
Mallers emphasized the importance for anyone to have at least some exposure to BTC, as both gold and BTC are expected to witness a surge in value during the Fed’s easing cycle.
The executive from Strike is among the prominent proponents of BTC who advocate for alternative forms of savings to shield against the devaluation of USD amid increasing inflation.
Mike Novogratz from Galaxy Digital is another figure in the sector who has expressed concerns about the unsustainable US debt and its repercussions on inflation.
Earlier this year, Novogratz warned that failing to rectify the US’s fiscal issues would further fuel the growth of BTC and digital assets.
A recent report from BlackRock echoed these sentiments in September, hailing BTC as a ‘unique diversifier.’ The report stated,
“In the long term, bitcoin’s adoption trajectory is likely to be influenced by the level of apprehension regarding global monetary stability, geopolitical stability, U.S. fiscal sustainability, and U.S. political stability.”
In the same vein, BTC has demonstrated traits of a ‘risk-on’ asset, showing substantial sensitivity to geopolitical tensions, a characteristic not shared by gold.
As suggested by Presto Research, BTC exhibits a combination of risk-on and risk-off attributes, with the ‘risk-on’ aspect prevailing in the short term.
At the time of writing, the asset was priced at $60.5K, registering a decline of 6% over the past week of trading.