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Since President-elect Donald Trump raised the possibility of creating a strategic bitcoin reserve in the United States, many advocates have pushed for the creation of a cryptocurrency reserve, saying it would make the country a leader in the global cryptocurrency scene.
However, not everyone in the cryptocurrency community is convinced of the viability of cryptocurrency reserves.
CryptoQuant CEO Ki Young Ju is pessimistic about the prospect Bitcoin The strategic reserve will receive approval from the next administration.
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BTC reserve is questionable
Young Joo is not convinced by this proposal Bitcoin reserve He would go on to say that Trump is unlikely to adopt a cryptocurrency strategy to protect the US dollar’s dominance because the dollar remains a safe-haven currency.
Throughout history, whenever the United States perceived a threat to its dominance of the global economy, gold prices rose, and discussions about the gold standard gained more attention.
In the late 1990s, Peter Schiff defended gold as the true form of money, just like gold is today.
– Ki Young Ju (@ki_young_ju) December 28, 2024
The CryptoQuant CEO believes that the new government’s policies will be greatly influenced by the apparent strength of the US economy and the dominance of the US currency in international trade.
Young Joo said that if there was a perceived threat to US economic dominance, gold, bitcoin or any other store of value assets would see their prices rise.
The US economy still dominates
Young Joo argued that there is no perceived threat to American hegemony since many investors still have too much confidence in the American economy or US dollar.
“I personally support the idea of a #Bitcoin Standard. However, I wonder if the US, as it continues to grow as other economies stagnate, will embrace Bitcoin as a strategic asset.”
The cryptocurrency executive believes that the Bitcoin reserve debate will only gain serious momentum if the country’s global economic dominance is “genuinely threatened,” adding: “At present, market sentiment points to confidence in continued US supremacy.”
The United States processed 37.8% of the world’s bitcoin in 2022, making it the leader in cryptocurrency mining, according to government data.
The position of the encoder can change
Young Joo said it was possible that Trump’s position on Bitcoin could take an unexpected turn depending on the broader political landscape.
If Trump succeeds in demonstrating the resilience of the US economy, strengthening the dollar’s superiority, and boosting his approval ratings, it is unclear whether he will maintain the dollar’s strong strength. Pro-Bitcoin stance He explained in a post that he demonstrated during his election campaign.
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The CryptoQuant CEO suggested that Trump is likely to “back off his defense of Bitcoin,” suggesting that it may signal a change in priorities, “without alienating his voter base.”
“At the BTC conference, was his mention of Bitcoin as a strategic asset a real step towards preparing for the Bitcoin standard, or just a calculated move to secure votes?” He said.
For the cryptocurrency executive, it is still uncertain which of Trump’s “Bitcoin campaign rhetoric” will be implemented.
Featured image from Pexels, chart from TradingView
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