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Since newly elected President Donald Trump raised the possibility of establishing a US Bitcoin Strategic Reserve, many proponents have pushed for the creation of the crypto stockpile, saying it would make the country the leader in the global cryptocurrency landscape.
However, not everyone in the crypto community is convinced of the feasibility of the crypto reserve.
CryptoQuant CEO Ki Young Ju is pessimistic about the prospect of the Bitcoin Strategic Reserve would receive approval from the new government.
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BTC reserve questionable
Young Ju is not convinced that the proposal has been submitted Bitcoin reserve would push ahead, saying it is unlikely Trump would embrace the crypto strategy to protect the dominance of the US dollar as the dollar remains a safe haven currency.
Throughout history, whenever the United States saw a threat to its dominance in the global economy, the price of gold rose and debates over the gold standard gained steam.
In the late 1990s, Peter Schiff defended gold as the true form of money, just as he does today…
— Ki Young Ju (@ki_young_ju) December 28, 2024
The CryptoQuant director believes that the new administration’s policies will be heavily influenced by the apparent strength of the US economy and the dominance of the US currency in international trade.
Young Ju said that if there is a perceived threat to US economic hegemony, gold, Bitcoin or other valuable assets would experience a surge in price.
The US economy still dominates
Young Ju argued that there is no threat to US dominance because many investors still have great confidence in the US economy US dollar.
“Personally, I support the idea of #Bitcoin Standard. However, I doubt that the US, while continuing to grow while other economies stagnate, would adopt Bitcoin as a strategic asset,” he said in a post.
The crypto executive believes that the Bitcoin reserve debate would only gain serious momentum if the country’s global economic dominance is “truly threatened,” adding: “Right now, market sentiment indicates confidence in the continued US supremacy.”
According to government data, the US processed 37.8% of the world’s Bitcoin in 2022, making the country the leader in crypto mining.
Crypto’s attitude may change
Young Ju said it is possible that Trump’s stance on Bitcoin could take an unexpected turn depending on the broader political landscape.
“If Trump succeeds in demonstrating American economic resilience, cementing the supremacy of the dollar and increasing his approval ratings, it is unclear whether he will maintain the strong position. pro-Bitcoin stance he demonstrated during his campaign,” he explained in a post.
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The CEO of CryptoQuant suggested that it is more likely that Trump would “step back from his Bitcoin advocacy,” noting that he could cite that there has been a change in priorities, “without alienating his voter base.”
“Was his mention of Bitcoin at the BTC conference as a strategic asset a real step toward preparing for a Bitcoin standard, or just a calculated move to secure votes?” he said.
For the crypto manager, it is still uncertain which of Trump’s ‘campaign rhetoric on Bitcoin’ will be fulfilled.
Featured image from Pexels, chart from TradingView