As the U.S. Federal Reserve begins its long-awaited easing cycle, Jack Mallers, CEO and founder of Bitcoin-focused payment platform Strike, has issued a stern warning to investors holding U.S. dollar (USD) savings. In a recent statement, Mallers advised that the Fed’s liquidity injection—commonly known as “money printing”—would lead to the devaluation of the USD, making it less valuable over time. He recommended that investors consider turning to Bitcoin (BTC) as a more secure option for protecting their wealth.
The Fed’s Easing Cycle And USD Devaluation
Mallers’ caution comes as the Federal Reserve signals its shift towards easing, a move expected to inject more liquidity into the market. While this could boost the economy temporarily, it comes at a cost—USD-based savings risk losing their purchasing power. As more dollars flood the market, the currency becomes diluted, diminishing the value of people’s savings.
“The money printing will make assets like Bitcoin much more valuable, while U.S. dollar savings will continue to lose purchasing power,” Mallers explained. He further stressed that even holding a small amount of Bitcoin would be beneficial, given that BTC and gold are likely to explode in value as a result of the Fed’s actions.
Bitcoin’s Role as a Hedge Against Inflation
Jack Mallers isn’t the only figure in the crypto world sounding the alarm. Galaxy Digital’s CEO, Mike Novogratz, has also been a vocal critic of the current U.S. fiscal policy. Novogratz has consistently warned that the U.S. debt levels and rising inflation are unsustainable, and he sees Bitcoin as a safe harbor from the storm. Earlier this year, Novogratz stated, “If the U.S. doesn’t put its fiscal house in order, Bitcoin and the broader digital economy will continue to grow.”
Even traditional financial institutions like BlackRock are acknowledging Bitcoin’s potential. In a September report, BlackRock described Bitcoin as a “unique diversifier,” noting its growing popularity among investors. The report pointed out that while BTC behaves as a “risk-on” asset, especially during times of geopolitical tension, it offers diversification benefits that USD savings do not.
Also Read: Bitcoin Holds Above $58K Amid 10% Correction – Top Altcoin Opportunities To Consider!
A Blend of Risk-On and Risk-Off
According to research from Presto, Bitcoin is evolving into an asset that straddles both “risk-on” and “risk-off” characteristics, with risk-on factors currently dominating. This volatility has led to Bitcoin’s recent dip, with the asset trading at $60.5K at press time—down 6% in the last seven days. However, both Mallers and Novogratz believe that the long-term potential of Bitcoin remains bullish, especially in the face of ongoing USD devaluation.
With the Federal Reserve set to continue its easing cycle, investors should carefully consider their options. Jack Mallers’ advice to reduce exposure to USD savings and invest in Bitcoin reflects a growing sentiment among financial leaders. As inflation rises and the dollar weakens, Bitcoin could serve as a critical asset for preserving wealth. Whether you’re a seasoned investor or new to the crypto space, holding even a fraction of Bitcoin may be the hedge you need in these uncertain economic times.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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