Bitcoin could benefit the US in creating an “economic boom,” suggests macroeconomist Luke Gromen. He believes that it is wiser to view the asset as a benefit rather than as a threat.
Gromen noted that adopting Bitcoin as a sovereign asset could give the US an added edge and create an economic boom, according to Finbold. In addition, such a move could provide an edge over global competitors such as China and Russia, he said during a Natalie Brunell podcast appearance on September 14.
Bitcoin could be a viable option for the US, especially if China and Russia opt to pile gold. According to Gromen, this scenario would translate to a “blow-up” in the bonds market. However, he said that for now, politicians in the US see Bitcoin as a threat to the dollar.
“Bitcoin can be a sovereign asset of the United States, it could really be a huge positive asset for the U.S.[…] I think ultimately the powers that be associated with the financial side of the U.S. absolutely see it as a threat, it doesn't 't have to be. It depends on how we could use it. If we came out and said all right Russia and China you want to stockpile gold we're going to settle trade in Bitcoins. Like boom, it totally blows up the bond market.[…] We would have an economic boom.”
Gromen acknowledged that the growth of Bitcoin threatens the dollar, but ruled out the possibility of replacing it with a crypto asset. He warned that the rise of Bitcoin should not be considered a bubble.
“It's not bubble, it's telling you what's happening. It's been a very good indicator of liquidity up and down and so I think it's a threat. I don't know that it necessarily needs to replace the dollar. I don't think that it will.”
According to Gromen, Bitcoin faces a constant risk of being negatively affected by government policies. He noted that although the government might crack down on Bitcoin, the chances of breaking the asset are low while referencing the Chinese government’s push to outlaw the flagship cryptocurrency.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.