Key Points
- Jack Mallers warns that the Fed easing cycle may devalue USD savings, but boost Bitcoin and gold values.
- He suggests that Bitcoin is a safer asset for savings as it is likely to increase in value with the Fed’s money printing.
Jack Mallers, the CEO and founder of Bitcoin-focused payment platform Strike, has issued a warning to investors with U.S. dollar savings.
As the Federal Reserve begins its easing cycle, Mallers suggests that the liquidity injection, commonly known as money printing, will devalue USD-based savings.
Mallers Advocates for Bitcoin
Mallers believes that those who are saving in USD would be better off switching to Bitcoin.
He stated, “The Fed has begun cutting rates. What does that mean? Financial authorities have decided who is paying for their mistakes: those holding US dollars. Get out of dollars. Bitcoin is the exit door for everyone.”
He further explained that while money printing does not equate to growth, it does lead to the destruction of the value of the currency being printed.
This means that those who are living off the value of the USD may see their quality of life worsen over the next few years.
Bitcoin and Gold Expected to Benefit
However, Mallers predicts that the Fed’s money printing will eventually boost the value of assets like Bitcoin and gold, providing a benefit for those who can afford to invest in these assets.
He even suggests that everyone should own at least a fraction of Bitcoin, as he expects the values of Bitcoin and gold to skyrocket during the Fed easing cycle.
Mallers is not alone in his bullish outlook for Bitcoin.
Mike Novogratz of Galaxy Digital has also warned about the potential impact of unsustainable US debt on inflation and suggested that Bitcoin and digital growth will continue if the U.S. does not manage its fiscal situation.
Similarly, BlackRock praised Bitcoin as a ‘unique diversifier’ in a September report, suggesting that its adoption trajectory is likely to be driven by concerns over global monetary stability, geopolitical stability, U.S. fiscal sustainability, and U.S. political stability.
However, it is worth noting that Bitcoin has been behaving like a ‘risk-on’ asset, with high negative sensitivity to geopolitical tensions, unlike gold.
According to Presto Research, Bitcoin has a mix of risk-on and risk-off properties, with ‘risk-on’ dominating in the near term.
At the time of writing, Bitcoin was valued at $60.5K, down 6% in the past seven days of trading.
