Recently, Donald Trump (the US President) praised the benefits 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, which is now a geostrategic sector that simply cannot be ignored. 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 DilemmaThe conflict between the interests of being the global reserve currency issuer, keeping proper trade balances and maintaining the value of currency 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 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 criticisms. 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 macroeconomist, Bitcoin enthusiast and coined that 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 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
