Galaxy Digital CEO Mike Novogratz advocated for Bitcoin BTC/USD as a potential solution to Nigeria’s economic woes as the country grappled with record-high inflation.
What Happened: Novogratz voiced his concerns about the economic crisis in Nigeria on Sunday, highlighting the importance of putting one’s investments in Bitcoin.
He encouraged his followers to do their own research about the number of countries that have experienced a significant decrease in purchasing power over the last five years. He further wrote, “It should be a human right to have a safe place to store the fruits of your labor,” implying that Bitcoin could serve as such a refuge.
Why It Matters: Novogratz’s views come in the wake of widespread protests in Nigeria over the increasing cost of living. Thousands of Nigerians have taken to the streets to express their discontent with economic reforms that have led to rampant inflation and hardship for ordinary citizens, according to a report by CNBC Africa.
The inflation rate spiked to 34% in June, the highest since March 1996, while the national currency, Naira, has plunged 44% against the U.S. Dollar. Despite the unrest, Nigerian President Bola Tinubu has pledged to continue with the reforms, claiming they are necessary to keep the country afloat.
Interestingly, Nigeria surpassed El Salvador as the country with the most Google search interest for Bitcoin as of this writing.
Bitcoin bulls like Novogratz continue to promote Bitcoin’s utility as an inflation hedge and safe haven asset. Year-to-date, the world’s largest cryptocurrency has grown 20%, and 72% over the past year.
Price Action: That said, the digital asset was in a free fall at the time of writing, having lost 17% in the last 24 hours, according to data from Benzinga Pro.
Photo by RISE on Flickr
Read Next:
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
