(Kitco News) - President Donald Trump has signed an executive order to establish a U.S. sovereign wealth fund, aiming to convert government assets into revenue-generating investments. This move has sparked debate over how the fund will be structured and whether Bitcoin could be included as a strategic reserve asset.
According to Jeff Booth, entrepreneur and author of The Price of Tomorrow, the current economic system is unsustainable, relying heavily on debt to fuel growth. “It took $185 trillion of debt to produce about $46 trillion of GDP growth over the last twenty years,” Booth told Kitco News, emphasizing how the debt cycle is becoming increasingly unmanageable. He warns that technology is accelerating deflation, making it impossible for governments to maintain economic expansion through traditional monetary policies. “Technology is a deflationary force so great that, in the end, nothing we do will stop it.”
With sovereign debt at record highs, Jeff Booth argues that Bitcoin offers a necessary escape from a financial system he sees as unsustainable. “Bitcoin is a solution out of that problem,” he stated, emphasizing that the traditional debt-based economy is structurally broken. According to Booth, “debt [is] already insolvent,” and the only way to maintain the system is through continuous money printing and inflation. He warns that as governments manipulate interest rates and expand credit, they are delaying an inevitable reckoning, making it crucial for individuals and institutions to seek alternatives. Unlike fiat currencies that can be endlessly debased, Bitcoin operates on a decentralized, energy-backed system with a fixed supply, making it an asset that cannot be manipulated by central banks.
Bitcoin's Role in Sovereign Wealth Strategies
While the idea of a U.S. sovereign wealth fund is new, similar models have existed worldwide for decades. Norway's Government Pension Fund, for example, manages over $1.3 trillion, primarily invested in equities, bonds, and real estate. Saudi Arabia’s Public Investment Fund (PIF) has over $700 billion in assets, focusing on economic diversification. Meanwhile, China’s State Administration of Foreign Exchange (SAFE) manages nearly $3 trillion in foreign reserves.
According to Booth, Bitcoin’s inclusion in such funds could shift global financial dynamics, as it operates outside government control and is secured by decentralized networks. He highlights Bitcoin’s growing appeal to institutional investors and national governments. “Many are buying it. Mining Bitcoin all over the world to do the same thing to front-run that and not signal that they’re doing that, but this has happened.”
In July 2024, U.S. Senator Cynthia Lummis introduced legislation advocating for a U.S. strategic Bitcoin reserve, proposing that up to 5% of national reserves be allocated to Bitcoin. Lummis argues this would hedge against currency debasement and ensure the U.S. remains competitive in digital asset adoption. The bill remains under discussion, as concerns over volatility and regulatory oversight persist.
Booth acknowledges Bitcoin’s price fluctuations but asserts that its long-term trajectory is positive. “Bitcoin is volatile; it lost 30 percent of its value in 2018, only to rise over 100 percent in the first six months of 2019,” he said, adding that volatility must be assessed in the context of global monetary shifts.
Global Implications and Future Outlook
The rise of Bitcoin in national financial strategies reflects a broader reevaluation of monetary policies worldwide. Several BRICS nations—including Russia and China—have been accumulating gold and exploring alternatives to the U.S. dollar for trade settlement. Some analysts speculate that Bitcoin could play a role in future global reserve frameworks.
According to Booth, the traditional economic system is incompatible with technological deflation, requiring continuous debt issuance to sustain itself. This, he argues, leads to wealth concentration and economic instability. “All of these things, you can expect inflation to get a lot higher. Because the only way to reset that debt is through massive inflation. In other words, debasement of currency,” Booth said.
He sees Bitcoin as an emerging discipline being imposed on financial markets, regardless of political resistance. “It would make sense that people will move their time to the highest kind of risk-free asset because if you hold in self-custody, it’s completely risk-free, has no counterparty risks to the other system, and it’s an energy-backed system,” Booth explained.
Current Economic Context
As of February 14, 2025, the U.S. national debt has surpassed $36.4 trillion, with annual interest payments nearing $1 trillion, according to the U.S. Treasury. Inflation remains persistent, with the latest Consumer Price Index (CPI) data showing a 3% increase in January, driven by rising energy and food costs.
Meanwhile, global Bitcoin adoption continues to accelerate. El Salvador, the first country to adopt Bitcoin as legal tender, has accumulated over 2,800 BTC in its national reserves, valued at approximately $400 million. The country has also launched Bitcoin-backed bonds to attract investment and develop infrastructure.
If the U.S. were to integrate Bitcoin into its sovereign wealth strategy, it would mark a major shift in global finance. According to Booth, such a move could help stabilize government finances while enabling individuals to protect their purchasing power.
For a deeper dive into Booth’s insights on Bitcoin’s role in sovereign wealth funds and economic transformation, watch the full interview embedded below.