As the US national debt approaches $40 trillion, Bitwise Chief Investment Officer (CIO) Matt Hougan argued that artificial intelligence (AI)-related stocks and Bitcoin should be held together. He explained, “In the process of the US Treasury addressing its massive debt, two scenarios are possible, and it is advisable to hold both assets to prepare for each. Currently, US Treasury Secretary Scott Bessent faces the challenge of reducing the fiscal deficit while maintaining economic growth above 3%. The first scenario is to boost economic growth through productivity improvements from AI adoption, thereby alleviating the debt burden. In this case, technology stocks, particularly AI semiconductor and processor companies, are expected to benefit significantly. Conversely, if economic growth falls short of expectations, a strategy known as 'debt reduction through inflation,' which reduces the real debt burden through high inflation, may become unavoidable. In such an environment, Bitcoin will be a key hedge asset.”
