The United States president Donald Trump has recently reaffirmed the positive impact of Bitcoin.BTCThe impact of the US economic situation, such as relieving “pressure” During the White House’s press conference on Friday, there was a discussion about the US dollar.
The President said Trump said that he was a big fan of crypto, an industry that has become a geostrategic competitor that can’t be ignored. Trump said:
“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 global reserve currency has to maintain a good trade balance, but also ensure the value of that currency 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.
But critics are not without their own criticism. said Even if US Treasury had the full supply of BTC, that would not cover the growing US Government budget. debtDollar value is likely to collapse in the future as this trend continues.
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 Alden, a macroeconomist who advocates Bitcoins, coined this 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.
The dollar currency (DXY) index has reached its highest level ever. It is a tool that measures the value of the US Dollar against the basket of fiat currencies. lowest level in three years This Thursday.
The decline in dollar strength coincides with an increase in US Government Bond Yields. This is a sign of declining investor confidence regarding the US government’s creditworthiness and its ability to sustain debt.
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
