A prominent financial expert, Luke Gromen, believes the next US president has a powerful tool to fight inflation: Bitcoin.
A Bitcoin-Backed Treasury Bond?
Gromen suggests issuing long-term Treasury bonds with a twist: a Bitcoin kicker. This means investors would receive a portion of their return in Bitcoin, alongside the traditional interest payments.
Why Bitcoin?
Gromen argues that this would attract investors even with lower interest rates, as the Bitcoin component would offset inflation risk. He believes this would create a stable interest rate environment, which is crucial for businesses to plan long-term projects and investments.
The Benefits of Stable Interest Rates
Stable interest rates allow businesses to accurately predict the cost of borrowing money, enabling them to set prices and make long-term plans with confidence. This, in turn, promotes economic growth and stability.
A Challenge to Wall Street
Gromen criticizes Wall Street’s influence on Washington, arguing that their focus on short-term gains hinders the real economy’s need for stable interest rates. He believes a Bitcoin-backed Treasury bond would empower businesses and create a more predictable economic environment.
The Bottom Line
While Gromen’s idea is unconventional, it highlights the potential of Bitcoin to play a role in addressing major economic challenges. Whether it’s a viable solution remains to be seen, but it certainly sparks a fascinating conversation about the future of finance.
