Recently, Donald Trump (the US President) praised the benefits of Bitcoin.BTC( ) on US economics, including relieving “pressure” The US Dollar was the currency of choice at Friday’s White House Press Conference.
The President said He said he’s a supporter of the crypto-industry, which is now a major sector due to its geostrategic importance. Trump also added:
“It has become amazing. I mean, it is the jobs that it produces, and I notice more and more you pay in Bitcoin. People are saying it takes a lot of pressure off the dollar, and it is a great thing for our country.”
Anders X, Digital Asset Researcher suggested Trump’s statements were offensive. reference to the Triffin DilemmaConflict of Interest: The issuer issuing the world reserve currency has to maintain a proper balance of trade, while also ensuring that the currency’s value will remain stable over time.
In order to maintain the reserve currency status, the US is required to run a trade deficit in order for foreign countries and the US dollar be used as a safe-haven against their fiat currencies that depreciate more quickly.
It is a quick-fix to satisfy global liquidity needs, but at the expense of long-term currency value. This happens because persistent trade deficits can be financed by money creation.
Trump has floated the idea previously. paying off the national debt with BitcoinThe asymmetry of the dollar’s inflation and that of the asset with a supply cap is emphasized.
Critics have criticized the film. said Even if US Treasury had the full supply of BTC, that would not cover the growing US Government budget. debtThe dollar’s value will eventually collapse as the currency continues to increase.
Related: Trump sidesteps question on crypto divesting to pass key bills
“Nothing stops this train,” According to analysts, the total deficit and overall debt are expected to increase.
Lyn A. Alden is a macro-economist, Bitcoin enthusiast and coined that phrase. “nothing stops this train” — a reference The extreme probability that governments around the world will continue to print money, destroying their currencies’ future value.
Dollar currency index, or DXY for short, is a measure of US dollar strength against major fiat currencies. lowest level in three years This Thursday.
A declining dollar strength is coupled with elevated US government bonds yields. It’s a signal that investor confidence has deteriorated in the US debt sustainability and creditworthiness.
Magazine: TradFi fans ignored Lyn Alden’s BTC tip — Now she says it’ll hit 7 figures: X Hall of Flame
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Source: cointelegraph.com
