Veteran investor Luke Gromen believes Bitcoin (BTC) or gold could skyrocket in price if the US adopts either as its reserve asset. He argues that the US is facing a “resource curse,” meaning it relies heavily on its dollar, which it produces cheaply compared to other nations.
The US Dollar’s Dominance and Its Downside
Gromen points out that while the US holds a monopoly on dollar production, its economy is becoming increasingly financialized, leading to de-industrialization, wealth inequality, and political instability. He compares the US to Saudi Arabia, which relies heavily on oil production.
The Solution: Gold or Bitcoin?
Gromen suggests that the US can overcome this “resource curse” by replacing its reliance on US Treasuries as the primary reserve asset with either gold or Bitcoin. This would require a massive amount of gold or Bitcoin to settle the US’s trade and current account deficits, causing their prices to rise significantly.
The Bottom Line
Gromen believes that if the US were to adopt Bitcoin as its reserve asset, the price of Bitcoin would have to go up dramatically to accommodate the massive demand.
Important Note: This article is for informational purposes only and should not be considered investment advice. Always conduct your own research before making any investment decisions.
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