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Mike Novogratz of Galaxy Digital believes that the US does not need Bitcoin as backing for the dollar. He commented that if it were to stockpile Bitcoin, it could potentially lead to a Bitcoin arms race among countries. He also speculated that Bitcoin could reach $500,000 if the US government decides to hoard it. Novogratz cited El Salvador and Bhutan as examples of countries already accumulating Bitcoin, with the former making the cryptocurrency legal tender, and the latter amassing around $780 million in digital assets.

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Mike Novogratz, the big cheese at Galaxy Digital, a firm all about investing and researching crypto, doesn’t think that soon-to-be President Trump is likely to stack up Bitcoin while he’s in office.

Chatting with Bloomberg TV, Novogratz suggested that all the different parts of the government are probably going to fight too much for the process to go smoothly. He further argued that the US dollar doesn’t need backup from another asset like Bitcoin to stay on top globally:

Novogratz said, “It’d be real neat if the US took the Bitcoin it has, maybe even get more, and showed the world that we’re gonna be all about technology — a crypto-first, digital asset-first country. But I really don’t think the dollar needs anything behind it to back it up.”

He added, “We’ve got the strongest military in the world. We’ve got the top economy in the world,” and said that he believes Bitcoin could skyrocket to $500,000 if the US government does decide to stockpile it.

Novogratz further clarified, saying that if the US were to create a Bitcoin stash, it could start a Bitcoin arms race between countries. He insisted,

“I think Bitcoin goes to $500,000 — it’s completely different because it forces all the other countries to buy it, and countries are already buying it.”

El Salvador jumped the gun as the first country worldwide to declare Bitcoin as legal tender back in 2021. Under President Nayib Bukele, the country keeps adding more of the limited digital currency to its stocks regularly.

The Kingdom of Bhutan, meanwhile, has apparently been making Bitcoin quietly for years. According to Arkham Intelligence, by September 2024 Bhutan had about $780 million in digital assets.

Both countries’ Bitcoin stocks have surged big time in the latest rally, with El Salvador raking in nine-figure gains and Bhutan’s total crypto stocks crossing the $1 billion mark.