The President of the United States Donald Trump recently advertised the positive impact of Bitcoin (BTC) on the American economy, including releasing “pressure” from the American dollar during the Friday press conference of the White House.
President he said That he is a fan of the cryptocurrency industry that has grown into a sector that cannot be ignored because of geostrategic competition. Trump added:
“It has become amazing. I mean that this is the work he produces, and I notice that you pay more and more in bitcoins. People say that it requires a lot of pressure from the dollar and this is a great thing for our country.”
Anders X Digital Resources Researcher suggested Trump’s comments were a reference to the Triffin dilemma or a conflict of interests between being an issuer of the global reserve currency, maintaining appropriate trade balances and ensuring long -term currency value.
As an issuer of the global reserve currency, USA must launch indefinite trade deficits to satisfy global dollars demand so that foreign countries can resolve trade and exploit the dollar as a warehouse for values in relation to faster Fiduat’s local currency.
This ensures a brief -term solution to satisfying global liquidity requirements at the expense of long -term currency value, because indefinite trade deficits are financed by creating money, which weakens the value of the US dollar.
Trump previously raised the idea of repayment of the domestic debt with Bitcoin, a nod to asymmetry between the inflation dollar and the tax resource.
However, critics he said That even if the Treasury Treasury was the owner of the entire BTC supply, it is still not enough to cover $ 37 trillion and the growing US government debtwhich will continue to develop, finally the rolled value of the dollar.
Related: Trump bypassed the question about cryptocurrencies to convey key bills
“Analysts say nothing stops this train,” deficits and total debt
Macroeconomist and supporter of Bitcoin Lyn Alden invented the phrase “nothing stops this train” – and reference To the extreme probability that global governments will never stop printing money and destroy the future value of their domestic currencies.
https://www.youtube.com/watch?v=ktgu8x6Pilw
The dollar currency indicator (DXY), an indicator that follows the American dollar strength in relation to the basket of main fiduat currencies, has reached the lowest level for three years on Thursday.
The falling dollar force comes among the increased profitability of US government bonds, a signal of the investor’s deteriorating trust in the US government’s creditworthiness and sustainable debt development.
Warehouse: Tradfi fans ignored the BTC Lyn Alden tip – now he says he will hit 7 digits: X Hall of Flame
This article does not contain investment advice or recommendations. Each investment and commercial movement involves risk, and readers should conduct their own research when making decisions.
