Bitcoin Could Benefit US In Creating An ‘Economic Boom’
Macroeconomist Luke Gromen has suggested that the US could benefit from adopting Bitcoin (BTC) instead of viewing the asset as a threat.
Gromen noted that adopting Bitcoin as a sovereign asset could give the U.S. an added advantage and create an economic boom while giving it an advantage over global competitors like China and Russia, he said during a podcast appearance with Natalie Brunell on April 14. September.
According to Gromen, Bitcoin could be an option for the US, especially if China and Russia choose to accumulate gold, a scenario that would translate into a “blow-up” in the bond market. However, the macroeconomist pointed out that politicians in the United States currently consider Bitcoin a threat to the dollar.
“Bitcoin can be a superb asset in the United States, it can really be a great positive asset for the United States<...> I think ultimately the powers that be associated with the financial side of the United States certainly see it as a threat, it doesn’t need to be. It depends on how we can use it. If we came out and said that Russia and China want to store gold, we’re going to settle the trade with Bitcoins. Like a boom, it completely blows up the bond market.<...> We wanted an economic boom, he said.
Bitcoin’s threat to the dollar
At the same time, Gromen acknowledged that the growth of Bitcoin threatens the dollar, but ruled out the possibility of the asset replacing it. In this line, he warned that Bitcoin’s growth should not be considered a bubble.
“It’s not a bubble, it tells you what’s going on. It’s been a very good indicator of liquidity up and down, so I think it’s a threat. I don’t know that it necessarily needs to replace the dollar. I don’t think so will do so, he added.
The Government’s Threat to Bitcoin
Furthermore, Gromen pointed out that Bitcoin faces a constant risk of being negatively affected by government policies. He noted that while the government may crack down on Bitcoin, the chances of breaking the asset are low while referring to the Chinese government’s push to ban the flagship cryptocurrency.
The macroeconomist’s proposal comes as the United States debates the regulation of cryptocurrencies. Along these lines, the White House released its first-ever cryptocurrency framework that calls for regulation of digital assets.
Watch the full interview below:
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