Since President-elect Donald Trump raised the possibility of creating a U.S. Strategic Bitcoin Reserve, many supporters have pushed for the creation of a cryptocurrency stockpile, saying it will position the country as a leader in the global cryptocurrency landscape.

However, not everyone in the crypto community is convinced of the feasibility of a crypto reserve.

CryptoQuant CEO Ki Adolescent Ju is bleak about the prospect Bitcoin The Strategic Reserve would receive approval from the fresh administration.

BTC reserve questionable

Adolescent Ju is not convinced that it was proposed Bitcoin Reserve would push the envelope by saying that Trump is unlikely to adopt a crypto strategy to protect the US dollar’s dominance as the dollar remains a safe-haven currency.

Throughout history, whenever the United States perceived a threat to its dominance in the world economy, gold prices rose and debates about the gold standard gained popularity.

In the delayed 1990s, Peter Schiff advocated for gold as a true form of money, much like today’s…

— Ki Adolescent Ju (@ki_young_ju) December 28, 2024

The director of CryptoQuant believes that the fresh government’s policy will be largely influenced by the apparent strength of the American economy and the dominance of the American currency in international trade.

Adolescent Ju said that if there is a perceived threat to US economic hegemony, the price of gold, Bitcoin or other assets that store value will experience a surge.

The American economy still dominates

Adolescent Ju argued that there was no apparent threat to American dominance because many investors still had great confidence in the American economy US dollar.

“I personally support the idea of ​​#Bitcoin Standard. However, I have doubts that the United States, continuing to grow in the face of stagnation in other economies, would adopt Bitcoin as a strategic asset,” he said in the post.

The cryptocurrency executive believes the Bitcoin reserve debate will only gain grave momentum if the country’s global economic dominance is “genuinely threatened,” adding: “Right now, market sentiment suggests confidence in the continued supremacy of the United States.”

According to government data, the United States processed 37.8% of the world’s bitcoins in 2022, making it the leader in cryptocurrency mining.

The attitude of cryptocurrencies may change

Adolescent Ju said it’s possible that Trump’s stance on Bitcoin could take an unexpected turn depending on the broader political landscape.

“If Trump manages to demonstrate US economic resilience, consolidate dollar dominance and increase his support, it is unclear whether he will maintain a strong position pro-Bitcoin stance demonstrated during his campaign,” he explained in the post.

CryptoQuant’s CEO suggested that it is more likely that Trump will “withdraw his support for Bitcoin,” pointing out that he could cite the change in priorities “without alienating his voter base.”

“Was the mention of Bitcoin as a strategic asset at the BTC conference a real step towards preparing for the Bitcoin standard, or just a calculated move to secure votes?” he said.

For the cryptocurrency executive, it’s still unclear which of Trump’s “Bitcoin campaign rhetoric” will come true.

Featured image from Pexels, chart from TradingView