Recently, Galaxy Digital’s CEO Mike Novogratz, who launched a new $113 million fund, made significant statements about the US economy and Bitcoin. The famous figure, who always draws attention with his statements, this time criticized the unsustainable debt structure of the country’s economy.
CEO’s Comment on the US Economy
Galaxy Digital’s famous CEO Mike Novogratz stated that the spending by the US government has brought the country to the brink of bankruptcy and warned that this situation has reached an unsustainable level.
In a new interview with Bankless, the billionaire noted that the spending by the government during the presidencies of former President Donald Trump and current President Joe Biden has risen to unprecedented levels.
Novogratz mentioned that the only way to balance the budget is to cut entitlements, but he noted that no matter which candidate wins the upcoming election, they will not do this.
What do you think is the ratio of the federal budget to GDP (gross domestic product) this year? 26%. It should have been 20%. So, 6%. They are spending almost $1.5 trillion to $2 trillion more than they should, and we are not collecting enough taxes. We tax at 20%. This leads to a 6% budget deficit. Who will pay for this? Your grandchildren or your children.
And the only way to stop this is to cut entitlements. What are entitlements? Medicare, Medicaid, and Social Security. No politician wants to tell old people, you can’t get the money you paid, you can’t get your hip replacement. We have the most inefficient healthcare system in the world. And these three things consume almost all the money. So, if you don’t touch entitlements, which I don’t think anyone will… you will talk about balancing, but you won’t even want to approach it.
The Future of Bitcoin
After his criticisms, Novogratz turned his attention to Bitcoin and made another significant statement. According to the CEO, in the scenario resulting from increasing debt and excessive spending, if investors turn to BTC to protect against the devaluation of the dollar, the 
price of Bitcoin could rise, and he added:
This is why it is really unfortunate that I am so optimistic about Bitcoin. I would prefer our government to deal with the terrible financial situation to avoid bankrupting our grandchildren because we will go bankrupt. We are bankrupting this country. Write down my damn words. We do not have the political will to do anything about it. Democrats don’t. Republicans don’t.
As of the time of writing, BTC has retreated from the $70,000 level it reached today and is trading at $67,250 after a 1.10% drop in the last 24 hours. On the other hand, it was announced today that the US national debt has reached a record high of $35 trillion.
