Bitcoin As A Strategic Asset? CryptoQuant CEO Weighs In
Ever since President-elect Donald Trump raised the possibility of establishing a U.S. strategic reserve of Bitcoin, many supporters have been pushing for the establishment of a cryptocurrency reserve, saying it would make the United States a global leader in cryptocurrencies.
However, not everyone in the crypto community is convinced of the viability of crypto reserves.
CryptoQuant CEO Ki Young Ju is pessimistic about the future of cryptocurrencies Bitcoin The strategic stockpile will be approved by the incoming administration.
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BTC reserves in doubt
Young Ju is not convinced by the proposed Bitcoin Reserve will persist, saying Trump is unlikely to embrace a cryptocurrency strategy to protect the dollar’s dominance as it remains a safe-haven currency.
Throughout history, whenever the United States realized that its dominance of the global economy was under threat, the price of gold soared and the debate over the gold standard heated up.
In the late 1990s, Peter Schiff championed gold as the true form of money, as it is today…
— Ki Young Joo (@ki_young_ju) December 28, 2024
CryptoQuant executives believe that the apparent strength of the U.S. economy and the dollar’s dominance in international trade will greatly influence the new administration’s policies.
Young Ju said that if U.S. economic hegemony is threatened, the price of gold, Bitcoin or any other store of value asset will soar.
The U.S. economy still dominates
Young Ju believes that there is no obvious threat to the dominance of the United States because many investors still have confidence in the U.S. economy or the U.S. economy. Dollar.
“I personally support the idea of a #Bitcoin Standard. However, I question whether the United States will adopt Bitcoin as a strategic asset while the rest of the economy continues to grow,” he said in a post.
The cryptocurrency executive believes that the debate over Bitcoin reserves will only gain serious momentum when the country’s global economic dominance is “really threatened,” adding, “Right now, market sentiment points to a lack of confidence in the U.S. Confident in continuing its dominance.”
According to government data, the United States processed 37.8% of the world’s Bitcoin by 2022, making it the leader in cryptocurrency mining.
Cryptocurrency stance may be shifting
Young Ju said Trump’s stance on Bitcoin could undergo unexpected shifts based on the broader political landscape.
“If Trump succeeds in demonstrating U.S. economic resilience, solidifying dollar hegemony and boosting his approval ratings, it’s unclear whether he will maintain a strong dollar.” Pro-Bitcoin stance He demonstrated this during the campaign,” he explained in a post.
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The CryptoQuant CEO said Trump is more likely to “abandon his advocacy of Bitcoin,” noting that he could point to a change in priorities “without alienating his voter base.”
“At the Bitcoin conference, he mentioned that Bitcoin is a strategic asset. Is this a real step in preparing for the Bitcoin standard, or is it just an orchestrated move to get votes?” he said.
For the cryptocurrency executive, it’s still unclear which of Trump’s “Bitcoin campaign rhetoric” will come true.
Featured images from Pexels, charts from TradingView
