In his annual letter, the CEO of a prominent asset management firm cautioned that the U.S. could jeopardize its financial supremacy due to escalating deficits, potentially paving the way for Bitcoin to take the lead.
The CEO, addressing the issue of the U.S. dollar’s stability, expressed concerns that rising national debt may drive investors towards “digital assets like Bitcoin (BTC).” He highlighted that since 1989, the national debt has surged at a rate three times that of the GDP.
“This year, interest payments will exceed $952 billion — surpassing defense expenditures. By 2030, mandatory federal spending and debt servicing will consume the entirety of federal revenue, leading to a chronic deficit.”
— CEO
While acknowledging the promising advancements in decentralized finance, he also warned of the potential risks to America’s economic advantage. He stated that if investors increasingly view Bitcoin as a safer investment than the dollar, it could undermine the nation’s financial standing.
Tokenization enhances the accessibility of investments
The firm’s Bitcoin ETF gained significant traction in 2024, attracting over $48 billion by March, thereby integrating cryptocurrencies further into mainstream finance. However, the CEO believes that blockchain represents far more than merely Bitcoin.
He predicted that tokenization could be the next significant breakthrough in finance, positing that “every stock, every bond, every fund — indeed, every asset — can be tokenized.” He argued that this technology could lead to more efficient and accessible markets.
Moreover, he asserted that tokenization could make investing “much more democratic,” as fractional ownership could reduce barriers to accessing previously unattainable assets, such as private real estate and private equity.