Following President-elect Donald Trump’s suggestion of establishing a U.S. Bitcoin Strategic Reserve, discussions within the crypto community have surged. Proponents of this initiative argue that creating a cryptocurrency stockpile could position the United States as a leader in the global cryptocurrency landscape. However, significant skepticism exists regarding the feasibility and necessity of such a reserve.
One notable voice in the debate is Ki Young Ju, CEO of CryptoQuant, who expresses doubts about the approval of a Bitcoin Strategic Reserve by the incoming administration. He argues that it is improbable that Trump will adopt a crypto-centric strategy, particularly given the United States’ current status as a stronghold for the U.S. dollar.
BTC Reserve Doubtful
Young Ju contends that the proposed Bitcoin reserve is unlikely to gain traction, noting that Trump may be hesitant to embrace measures that could undermine the dollar’s dominance as a reserve currency. He points out the historical context where the U.S. has reacted defensively to perceived threats against its economic supremacy, often leading to increased interest in alternative assets like gold.
Throughout history, whenever the United States perceived a threat to its dominance in the global economy, gold prices surged, and debates around the gold standard gained traction.
In the late 1990s, Peter Schiff championed gold as the true form of money, much like today’s…
— Ki Young Ju (@ki_young_ju) December 28, 2024
According to Young Ju, governmental policies will likely be influenced by the ongoing strength of the U.S. economy and the dollar’s role in international trade. He highlights that any perceived threats to U.S. economic hegemony would consequently drive interest in Bitcoin and similar assets.
US Economy Still Dominates
Young Ju emphasizes that as of now, no significant threats to American dominance are apparent. He points to the continued confidence that investors place in the U.S. economy and the dollar.
“I personally support the idea of #Bitcoin Standard. However, I question whether the U.S., while continuing to grow as other economies stagnate, would adopt Bitcoin as a strategic asset,” he remarked in a recent post.
The debate regarding a Bitcoin reserve may only accelerate if the global economic dominance of the U.S. is genuinely perceived to be at risk, with current market sentiment indicating a sustained trust in American supremacy.
In 2022, the U.S. accounted for 37.8% of global Bitcoin processing activity, reinforcing its position as a leader in crypto mining, according to official data.
Crypto Stance Could Shift
While Young Ju is skeptical of Trump’s commitment to Bitcoin, he acknowledges that the President’s stance could shift drastically depending on political circumstances. If Trump effectively demonstrates U.S. economic resilience and bolsters the dollar’s status, it remains uncertain if he will persist with his pro-Bitcoin rhetoric.
“If Trump succeeds in showcasing U.S. economic resilience, reinforcing the dollar’s supremacy, and boosting his approval ratings, it’s unclear if he would maintain the strong pro-Bitcoin stance he demonstrated during his campaign,” Young Ju elaborated.
“At the BTC Conference, was his mention of Bitcoin as a strategic asset a genuine step toward preparing for a Bitcoin Standard, or merely a calculated move to secure votes?” he questioned.
Ultimately, it remains ambiguous which aspects of Trump’s campaign rhetoric regarding Bitcoin will materialize as policy. The crypto community is left pondering the potential ramifications of government actions on the future of cryptocurrency in the U.S.
Featured image from Pexels, chart from TradingView
