The United States president Donald Trump has recently praised Bitcoin’s positive impact (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, which is now a geostrategic sector that simply cannot 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 remarks were not intended to be taken seriously. 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.
In order to maintain the reserve currency status, the US is required to run constant trade deficits in order for foreign countries and the US dollar be used as a safe-haven against their fiat currencies that depreciate more quickly.
The short-term benefit is that the US currency’s value will be reduced as the trade deficits continue to grow.
Trump has floated the idea previously. paying off the national debt with BitcoinThe symbiotic relationship between inflationary dollars and assets 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. 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 deficits 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.
Dollar currency index, or DXY for short, is a measure of US dollar strength against major 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
