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Since President-elect Donald Trump suggested the possibility of establishing a US Bitcoin Strategic Reserve, many advocates have pushed for the creation of a crypto stockpile, saying it would make the country a leader in the global cryptocurrency landscape.
However, not everyone in the crypto community is convinced of the potential of the crypto reserve.
CryptoQuant CEO Ki Young Ju is not optimistic that the prospect of a Bitcoin Strategic Reserve will get approval from the incoming administration.
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BTC Reserve Doubtful
The younger Ju is not sure that the proposed Bitcoin reserve will pass, saying that it is unlikely that Trump will accept a crypto strategy to protect the dominance of the US dollar because the greenback remains a safe currency.
Throughout history, whenever the United States saw a threat to its dominance in the world economy, gold prices rose, and arguments about the gold standard gained momentum.
In the late 1990s, Peter Schiff championed gold as a real currency, just like today…
— Ki Young Ju (@ki_young_ju) December 28, 2024
The CryptoQuant CEO thinks that the new government’s policies will be heavily influenced by the apparent strength of the US economy and the dominance of the American currency in international trade.
Young Ju said that if there is a perceived threat to the economic hegemony of the US, gold, Bitcoin and any other commodity of store value will experience an increase in its value.
America’s Economy Still Dominates
Young Ju argued that there is no perceived threat to US dominance as many investors still trust the US economy or the US dollar.
“I personally support the idea of ​​#Bitcoin Standard. “However, I doubt that the US, while continuing to grow as other economies falter, will use Bitcoin as a strategic asset,” he said in the post.
The crypto executive believes that the debate about the Bitcoin reserve will gain more momentum if the country’s economic dominance is “really threatened,” and added, “At the moment, the market is raising confidence in the progress of the US.”
The US processed 37.8% of the world’s Bitcoin in 2022, making it the leader in crypto mining, according to government data.
Crypto Stance Can Change
The younger Ju said it is possible that Trump’s stance on Bitcoin may take an unexpected turn depending on the broader political environment.
“If Trump is successful in demonstrating the recovery of the US economy, strengthening the dollar, and improving his approval ratings, it is unclear whether he will maintain the strong pro-Bitcoin stance he showed during his campaign,” he explained in the post.
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The CEO of CryptoQuant suggested that it is possible, Trump will “back off on his Bitcoin speech,” suggesting that he may signal a change in priorities, “without alienating his voters.”
“At the BTC conference, was his talk about Bitcoin as a strategic asset a real step to prepare for the Bitcoin Standard, or a measured step to secure votes?” he said.
For crypto executives, it is not yet certain which “Trump’s campaign speech on Bitcoin” will come true.
Featured image from Pexels, chart from TradingView