Recently, Donald Trump (the US President) praised the benefits of Bitcoin.BTCThe impact of the US economic situation, such as relieving “pressure” The US Dollar was the currency of choice at Friday’s White House Press Conference.
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 is a digital asset researcher. suggested Trump’s statements were offensive. reference to the Triffin DilemmaThe conflict between the interests of being the issuer and the reserve currency of the world, while maintaining a proper balance of trade, as well as ensuring that the currency’s value is maintained over the long term.
The US, as the world’s reserve currency issuer, must maintain a persistent trade deficit to satisfy the demand of foreign nations for dollars. This allows them to settle their trade and store value in the dollar against rapidly depreciating fiat currencies.
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 The US Treasury would need to purchase the BTC in order to pay for the US government’s growing $37 trillion 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,” Analysts predict that the deficits and debt will continue to rise.
Lyn Alden, a macroeconomist who advocates Bitcoins, coined this phrase “nothing stops this train” — a reference Extremely likely that world governments will not stop printing currency and destroy the value of national currencies in the future.
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 sign that investor confidence has deteriorated in the US government’s ability to repay its debt 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
