The United States president Donald Trump has recently emphasized 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 He said he’s a supporter of the crypto-industry, a growing sector which cannot be ignored because of geostrategic rivalry. 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 is a 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.
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 floated this idea before. paying off the national debt with BitcoinThis is an allusion to the asymmetries between inflationary dollars and assets with supply caps.
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. 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,” Analysts predict that the deficit and debt will continue to rise.
Lyn A. Alden is a macroeconomist, 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.
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 On 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
