Jack Mallers Sounds Alarm over Potential USD Depreciation, Promotes Bitcoin as Safe Haven
Jack Mallers, the CEO and creator of Strike, a platform that focuses on Bitcoin [BTC]-based payments, is advising individuals who hold savings in U.S. dollars to exercise caution as the Federal Reserve initiates an easing cycle.
As per Mallers, the influx of liquidity by the Fed, also known as money printing, will dilute the value of USD-based savings, making them less significant.
He suggested that those who choose to save in USD could find a more secure option in Bitcoin.
“With the Federal Reserve cutting interest rates, what does this imply? The consequence of their actions will be shouldered by those holding onto U.S. dollars. It might be judicious to divest from the dollar. #Bitcoin could be the solution for everyone seeking an exit plan.”
Federal Reserve’s Easing Measures Set to Benefit Bitcoin
Mallers also pointed out that the Fed’s monetary policy would likely elevate assets like Bitcoin, though not necessarily USD savings.
“The act of printing money doesn’t equate to fostering growth. It essentially erodes the purchasing power of the currency holders. Hence, if your financial stability is tied to the value of USD, brace yourself for a challenging period ahead. The ones to benefit will be those with investments in assets like Bitcoin.”
Emphasizing the significance, Mallers recommended that everyone should consider having at least a portion invested in BTC, foreseeing a surge in the worth of both gold and Bitcoin during the period of Federal Reserve easing.
Mallers, a proponent of Bitcoin, joins the ranks of major Bitcoin enthusiasts advocating for diversified savings to hedge against devaluation of USD amidst mounting inflation.
Mike Novogratz from Galaxy Digital is another such advocate in the industry who has raised concerns about the unsustainable levels of U.S. debt and the resultant impact on inflation trends.
In an earlier statement this year, Novogratz had highlighted that unless the U.S. takes decisive steps to restore fiscal stability, the growth of Bitcoin and other digital currencies would persist.
This sentiment was recently echoed by BlackRock in a report released in September. The asset management firm lauded Bitcoin as a ‘distinct form of diversification.’ A portion of their report read,
“In the long run, the adoption of Bitcoin is expected to be influenced by concerns regarding global monetary security, geopolitical stability, U.S. fiscal durability, and U.S. political constancy.”
Despite this, Bitcoin has been exhibiting properties akin to a ‘high-on-risk’ asset, displaying a heightened sensitivity to geopolitical uncertainties unlike gold.
According to Presto Research, Bitcoin combines both ‘risk-on’ and ‘risk-off’ characteristics, with the former predominating in the short term.
At the time of writing, Bitcoin was valued at $60.5K, marking a 6% decline in the past seven days of trading.