Bitcoin's Potential As A National Reserve Asset

According to U.Today, Galaxy Digital CEO Mike Novogratz recently discussed the potential for Bitcoin to become a national reserve asset in the United States during an interview with Bloomberg. Novogratz suggested that if Bitcoin were adopted as a national reserve asset, its price could soar to $500,000. This speculation comes in light of a bill introduced by Senator Cynthia Lummis, which proposes that the US Treasury acquire 5% of Bitcoin's total supply. However, the bill, introduced in September, is expected to encounter significant legislative challenges. Novogratz expressed skepticism about the likelihood of Bitcoin being established as a reserve asset in the US. He argued that the US dollar does not require backing by other assets, citing the country's strong military, dominant economy, and established reserve currency status. He stated, "I don't necessarily think the dollar needs anything to back it up. We have the strongest military in the world. We have the dominant economy in the world and the reserve currency we've earned. And to need to back up the reserve currency is counterintuitive." Despite his doubts, Novogratz noted that if the proposal were implemented, it could prompt other nations to also purchase Bitcoin. He further speculated that Bitcoin might surpass the market capitalization of gold within the next decade. Reflecting on generational shifts in investment preferences, Novogratz remarked, "I'm turning 60 next week, and so I still own about gold. I'm an old guy. But let me tell you, no 40-year-olds own gold. No, 30-year-olds...And so as we see this generational shift, Bitcoin should match gold within five or ten years." Earlier this year, Novogratz predicted that Bitcoin's price could exceed $100,000 by the end of the year. Currently, Bitcoin is trading at $92,741, having reached a new all-time high of $93,477 earlier today, according to CoinGecko data.