Following the US election, the crypto world is buzzing about Donald Trump’s pro-Bitcoin stance. During his campaign, he promised favorable crypto policies, even suggesting a national Bitcoin reserve. But will he actually deliver?
Will Trump Really Embrace Bitcoin?
CryptoQuant CEO Ki Young Ju isn’t so sure. He points out that historically, whenever the US felt its economic dominance threatened, the price of gold (the former global standard) spiked. The US dollar is now the global standard, and the US has actively avoided returning to a gold standard.
Ju argues that Bitcoin is now filling the role gold once did – a hedge against economic uncertainty. However, he believes the US government would only adopt Bitcoin as a reserve asset if they saw a real threat to their global economic power. Right now, the US dollar is strong, so that threat doesn’t seem to exist.
Instead of a reserve asset, Ju thinks the US might use Bitcoin for risk management or leverage. This is a far cry from the hopes of some Bitcoin enthusiasts.
Dollar Dominance vs. Bitcoin Adoption
Ju suggests that if Trump prioritizes maintaining the US dollar’s dominance, his pro-Bitcoin policies might take a backseat. This is especially likely given Trump’s recent confident statements about the US economy. So, those campaign promises might have been just a way to win votes.
Current Bitcoin Price
At the time of writing, Bitcoin is trading at $95,259, up slightly, but trading volume is significantly down.
