Since President-elect Donald Trump raised the possibility of establishing a US Bitcoin Strategic Reserve, many advocates have pushed for the creation of the crypto stockpile, saying that it would make the country as the leader in the global cryptocurrency landscape.
However, not everyone in the crypto community is convinced of the feasibility of the crypto reserve.
CryptoQuant CEO Ki Young Ju is pessimistic that the prospect of the Bitcoin Strategic Reserve would get an approval from the incoming administration.
Young Ju is not convinced that the proposed Bitcoin reserve would push through, saying it is unlikely that Trump would embrace the crypto strategy to protect US dollar dominance because the greenback remains 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
The executive of CryptoQuant thinks that the policies of the new government would be much influenced by the apparent strength of the US economy and the predominance of the American currency in international trade.
Young Ju said that if there is a perceived threat to the US economic hegemony, gold, Bitcoin or any other store-of-value assets would experience a surge in its price.
Young Ju argued that there is no perceived threat to American dominance since many investors still have great confidence in the US economy or the US dollar.
“I personally support the idea of #Bitcoin Standard. However, I question whether the US, while continuing to grow as other economies stagnate, would adopt Bitcoin as a strategic asset,” he said in a post.
The crypto executive believes the debate on the Bitcoin reserve would only gain serious momentum if the country’s global economic dominance is “genuinely threatened,” adding, “At present, market sentiment suggests confidence in the US’ continued supremacy.”
The US processed 37.8% of the world’s Bitcoin in 2022, making it the leader in crypto mining, according to government data.
Crypto Stance Could Shift
Young Ju said that it is possible that Trump’s stance on Bitcoin may take an unexpected turn depending on the broader political landscape.
“If Trump succeeds in showcasing US economic resilience, reinforcing the dollar’s supremacy, and boosting his approval ratings, it’s unclear if he would maintain the strong pro-Bitcoin stance he demonstrated during his campaign,” he explained in a post.
The CryptoQuant CEO suggested that more likely, Trump would “step back from his Bitcoin advocacy,” pointing out that he might cite that there has been a change in priorities, “without alienating his voter base.”
“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 said.
For the crypto executive, it is still unsure which of Trump’s “campaign rhetoric on Bitcoin” will be fulfilled.
Featured image from Pexels, chart from TradingView
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