President Donald Trump recently touted the positive impact of Bitcoin (BTC) on the US economy, including easing “pressure” from the US dollar at a White House press conference on Friday.
The president said he is a fan of the crypto industry, which has grown into a sector that cannot be ignored due to geostrategic competition. Trump added:
“It’s been amazing. I mean, it’s the job that produces and you’re increasingly realizing that you pay with Bitcoin. People say it puts a lot of pressure from the dollar. That’s great for our country.”
Digital Asset Researcher Anders X suggested that Trump’s comments were a reference to the Triffin dilemma or a conflict of interest between being the issuer of a global reserve currency, maintaining appropriate trade balances and ensuring the long-term value of the currency.
As the issuer of global reserve currency, the US must implement a sustained trade deficit so that foreign countries can settle trade and use dollars as valuable storage against local Fiat currency, where it is depreciated more quickly.
It provides a short-term solution to meet global liquidity demand at the expense of the long-term value of the currency, where a sustained trade deficit is funded through the creation of money and dilutes the value of the US dollar.
Trump previously came up with the idea of paying back citizen debts with Bitcoin. This nodded to the asymmetry between inflation dollars and assets covering supply.
However, critics say that even if the US Treasury owns the entire supply of BTC, it is not enough to cover the US government’s growing debt of $37 trillion.
Related: Trump Side Step Questions about encryption to sell to pass major invoices
“There’s nothing to stop this train,” says analysts
Macroeconomist and Bitcoin advocate Lynne Alden coined the phrase “Nothing Nothing Stops This Train.” This is a reference to the extreme possibility that the World Government will not stop printing money and never stop destroying the future value of the country’s currency.
https://www.youtube.com/watch?v=ktgu8x6pilw
The Dollar Currency Index (DXY) is a metric tracking the strength of the US dollar against a basket of major Fiat currencies, reaching its lowest level in three years on Thursday.
The decline in dollar strength comes from rising US government bond yields, worsening investors’ trust in US government creditworthiness, and signaling debt sustainability.
Magazine: Tradfi fans ignored Lyn Alden’s BTC tips – Now she says she’ll hit seven figures: X Hall of Flame
This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.
