CryptoQuant CEO Doubts Feasibility of US Bitcoin Strategic Reserve
Following President-elect Donald Trump's suggestion of a US Bitcoin Strategic Reserve, advocates argue it could position the US as a leader in global cryptocurrency. However, skepticism exists within the crypto community regarding its feasibility.
BTC Reserve Doubtful
CryptoQuant CEO Ki Young Ju expresses doubt about the approval of the proposed Bitcoin reserve. He believes Trump may not adopt a crypto strategy that threatens US dollar dominance, viewing the dollar as a safe haven currency.
Throughout history, whenever the United States perceived a threat to its dominance in the global economy, gold prices surged, and debates around the gold standard gained traction.
In the late 1990s, Peter Schiff championed gold as the true form of money, much like today’s…
— Ki Young Ju (@ki_young_ju) December 28, 2024
Ju suggests that new government policies will be shaped by the strength of the US economy and the dollar's role in international trade. He notes that if there is a perceived threat to US economic hegemony, assets like gold and Bitcoin would likely see price increases.
US Economy Still Dominates
Ju contends there is currently no perceived threat to US dominance, as investor confidence in the US economy and the US dollar remains strong. He stated, “I personally support the idea of #Bitcoin Standard. However, I question whether the US...would adopt Bitcoin as a strategic asset.”
The debate on the Bitcoin reserve may gain traction only if the US's global economic dominance appears threatened. Currently, market sentiment reflects confidence in US supremacy.
In 2022, the US accounted for 37.8% of global Bitcoin processing, maintaining its status as the leader in crypto mining.
Crypto Stance Could Shift
Ju indicates that Trump's position on Bitcoin may change based on the political landscape. If Trump demonstrates US economic resilience and bolsters the dollar's supremacy, his commitment to Bitcoin advocacy might wane, allowing him to adjust priorities without alienating supporters.
“At the BTC Conference, was his mention of Bitcoin as a strategic asset a genuine step toward preparing for a Bitcoin Standard, or merely a calculated move to secure votes?” he questioned.
Uncertainty remains regarding which aspects of Trump’s “campaign rhetoric on Bitcoin” will materialize.
Featured image from Pexels, chart from TradingView