Mike Novogratz, the founder of the encryption investment and research company Galaxy Digital, recently said in an interview that the possibility of the US President-elect Trump establishing a Bit strategy reserve during his term is "extremely low".
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ToggleTrump is unlikely to establish a Bit strategic reserve
In an interview with Bloomberg TV, the CEO of Galaxy Digital said he expects conflicts between different government departments to hinder this process. In addition, Mike Novogratz also believes that the US dollar does not need another asset to maintain its dominant position as a global reserve currency:
"I think it would be very wise for the US to use its existing Bit as a reserve, and even add a little more, and then tell the world that we will become a technology-first country - a country that prioritizes cryptocurrencies and digital assets. But I don't think the US dollar needs other assets to support its value."
If realized Bit will rise to $500,000
However, Mike Novogratz added that the US has the world's most powerful military and the world's most advantageous economy, and if the US government really establishes a Bit strategic reserve, it will trigger a global sovereign state Bit "arms race" and drive Bit to a price of $500,000. He said:
"I think Bit will soar to $500,000 - this is a whole new paradigm, because this will force other countries to also buy Bit, and some countries are already buying it."
In fact, many countries have already started to establish their own Bit reserves. It is well known that El Salvador became the first country in the world to legalize Bit in 2021, and under the guidance of President Nayib Bukele, it has continued to accumulate Bit, with a total of 5,748.8 Bit worth $510 million as of now.
In addition, the Kingdom of Bhutan also holds about 12,574 Bit, worth $110 million at the current price, which is equivalent to one-third of the country's GDP.
