The CEO of market intelligence platform CryptoQuant is warning investors that the US government’s motivations for creating a Bitcoin (BTC) standard may be different than they expect.
In a new thread on the social media platform
“Personally, I support the idea of Bitcoin Standard. However, I doubt that the US, even though it continues to grow while other economies stagnate, would embrace Bitcoin as a strategic asset. If the debate is to gain serious momentum, the US must see its global economic dominance actually threatened. Currently, market sentiment indicates confidence in the continued supremacy of the US.”
The Bitcoin Standard – also a book written by Saifedean Ammous – refers to the idea that the US government could use Bitcoin as a reserve.
According to Ju, even if that were the case, the government’s intentions would be vastly different from those of Bitcoin bulls and investors, although it is a possibility that the government could create a BTC standard, although no details were mentioned.
“While it is conceivable that the US government could purchase Bitcoin for risk management or economic benefit, its motivations would likely differ greatly from what Bitcoiners imagine.
The idea of buying Bitcoin in preparation for a Bitcoin standard or as a tool to defend the dollar system seems far removed from current reality. As global capital flows into the US, many still believe the dollar’s dominance is secure.”
Ju concludes by saying that if newly elected President Donald Trump’s term is successful and he rebuilds the strength of the US dollar, he could change his pro-BTC stance.
“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 pro-Bitcoin stance he has shown during his campaign. He could easily walk away from his advocacy for Bitcoin, citing changing priorities, without alienating his voter base.”
Earlier this month, Fed Chairman Jerome Powell said the government cannot legally hold Bitcoin as a reserve and has no plans to change the law, causing the crypto king to see a significant price drop.
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Generated image: Midjourney