Bitcoin can give the US an “economic boost”, says financial expert
The leading cryptocurrency Bitcoin found another ally in macroeconomist Luke Gromen who recently argued that the United States could benefit if it starts to see the digital currency as an asset and not as some kind of threat.
Gromen made his statement during his appearance on a Sept. 14 podcast hosted by Natalie Brunell.
Gromen is well respected in the world of financial research for his ability to provide a comprehensive analysis of global and current macroeconomic trends.
According to Gromen, in the event that economic rivals China and Russia choose to pile up on gold, it will make Bitcoin an alternative and give the United States an advantage, especially that such a scenario could lead to a “blowout” in the bond market.
“We would have an economic boom,” the macroeconomist claimed.
Is Bitcoin a Threat to the US Dollar?
Unfortunately, Gromen also pointed out a sad truth that has haunted the crypto alpha for so long.
US policymakers currently see the digital asset as a threat to the country’s fiat currency – the US dollar.
Gromen’s statement comes days after the first-ever crypto regulatory framework under US President Joe Biden goes into effect amid circulating news reports about the slowdown and volatility now plaguing the crypto landscape.
The Biden administration recently became active in pursuing more control of cryptocurrencies through legislation due to the rising popularity of the asset class.
Macroeconomist Luke Gromen. Image: Techie + Gamers
It can be recalled that in a hearing in 2019, Congressman Brad Sherman aired his feelings and fears about the potential dangers that Bitcoin poses to the dollar, which for decades has been considered the world’s reference reserve currency.
Sherman said that if cryptocurrency doesn’t work, it causes investors to lose a ton of money right down the drain. If it actually works and achieves its goals, it could displace the US dollar or disrupt its role as virtually “the only reserve currency in the world.”
Such ideals proved to be instrumental in the country’s indecision to have a more positive perspective on Bitcoin.
Bitcoin growth not a bubble, macroeconomist says
Although Bitcoin is staring at a price decline of 7.5% in the last seven days and is trading at $20,079 at the time of writing according to data from Coingecko, the growth should not be considered a “bubble”.
In fact, Gromen acknowledged the threat that this growth could pose to the dollar. However, the macroeconomist was quick to brush off the idea of Bitcoin replacing the well-established currency.
Gromen was adamant that this would never happen, and said that it was also not necessary. This helps to strengthen his suggestion that the US should start looking at Bitcoin as a resource now that there is a strong possibility that China and Russia will put down their gold chips.
BTC total market cap at $382 billion on the daily chart | Source: TradingView.com Featured image from Foodforfitness.co.uk, Chart: TradingView.com
