Investor Luke Gromen believes Bitcoin (BTC) could see a price increase if gold replaces US Treasuries as the main global settlement asset.
Gold as the New Settlement Asset?
Gromen argues that if the US government is serious about bringing manufacturing back to America, it needs to reduce the outflow of dollars and Treasuries. He suggests a solution: allowing gold to become the primary settlement asset. A settlement asset is simply what central banks and governments use to settle international trades and debts.
Bitcoin’s Potential Role
Gromen points out that shifting to gold as a settlement asset would weaken the US dollar. He finds it significant that former President Trump didn’t impose tariffs on gold, suggesting a deliberate policy to encourage capital flow towards gold. This, Gromen believes, could strengthen the dollar system in the long run by making it more gold-backed, while simultaneously weakening the dollar’s current dominance. He sees this as a way to navigate the “Triffin Dilemma,” a complex economic concept about the challenges of a global reserve currency. Ultimately, Gromen thinks Bitcoin could benefit from this shift, becoming a reliable alternative.
Bitcoin’s Current Price and Disclaimer
At the time of writing, Bitcoin was trading at $84,603. It’s important to remember that this is just one expert’s opinion, and investing in cryptocurrencies is risky. Always do your own research before investing.
