US President Donald Trump recently touted the positive impact of Bitcoin (BTC) About the U.S. economy, including alleviating the “pressure” of the dollar at a White House press conference on Friday.
president explain He is a fan of the cryptocurrency industry, which has grown into an area that has been overlooked due to competition in geographic strategic areas. Trump added:
“It’s gotten great. I mean, it’s the job it produces, and I’ve noticed the job you pay more and more with bitcoin. People say it’s under a lot of pressure, and it’s a good thing for our country.”
Digital Assets Researcher Anders X suggestion Trump’s comment is Quoting Triffen’s Dilemmaor become a global reserve currency issuer, conflicts of interest between maintaining proper trade balances and ensuring the long-term value of the currency.
As an issuer of global reserve currencies, the United States must operate a sustained trade deficit to meet global demand for the dollar so that foreign countries can address trade and use the dollar as a store of value in exchange for faster local fiat currencies.
This provides a short-term solution to meet global liquidity needs at the expense of the long-term value of the currency, as the ongoing trade deficit is raised by creating currency creation, which dilutes the value of the US dollar.
Trump has proposed it before Pay off the Treasury bonds with Bitcoinpaying tribute to the asymmetry between the inflation dollar and the supply-capped assets.
However, critics have explain Even if the U.S. Treasury has an entire supply of BTC, it is still not enough to cover $37 trillion and the growing U.S. government debtthis will only continue to grow and eventually collapse the value of the dollar.
Related: Trump evades questions about crypto divestitures to pass key bills
“There’s nothing to stop this train,” analysts said.
Lyn Alden, macroeconomist and Bitcoin advocate refer to The extreme possibility is that global governments will never stop printing money and destroy the future value of their national currency.
https://www.youtube.com/watch?v=ktgu8x6pilw
The US dollar currency index (DXY) is a measure that tracks the strength of the US dollar with a basket of major fiat currencies. The lowest level in three years Thursday.
The decline in the strength of the dollar is due to a signal of investor confidence in the credibility of the U.S. government’s reputation and its debt sustainability.
This article does not contain investment advice or advice. Every investment and trading move involves risks and readers should conduct their own research when making decisions.
