Hougan: Own Both AI Stocks and Bitcoin to Hedge Against US Debt Burden

As the US government's debt burden approaches $40 trillion, Bitwise CIO Matt Hougan believes investors should consider owning both AI stocks and Bitcoin as a hedge against different macroeconomic outcomes.

Hougan argues that a successful AI-led productivity boom could support technology earnings and semiconductor demand, making AI stocks a good bet if policymakers can 'grow out' of the debt through stronger productivity.

However, if growth disappoints and the government faces persistent deficits, inflation can reduce the real value of outstanding debt. In this scenario, Hougan sees Bitcoin as a distinct hedge due to its capped supply at 21 million coins, limiting its exposure to monetary expansion.