Bitcoin can benefit the United States by creating an “economic boom”

Macroeconomist Luke Gromen has suggested that the United States could benefit from adopting Bitcoin (BTC) instead of viewing the asset as a threat.

Gromen noted that adopting Bitcoin as a sovereign asset can give the United States an extra edge and create an economic boom while providing an advantage over global competitors like China and Russia, he said during a podcast appearance by Natalie Brunell on September 14.

According to Gromen, Bitcoin may be an option for the United States, especially if China and Russia choose to hoard gold, a scenario that would result in a bond market “blowout.” However, the macroeconomist pointed out that currently US policymakers 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 United States I think at the end of the day, the powers associated with the financial side of the United States absolutely see him as a threat, he doesn’t have to be. It depends on how we could use it. If we go out and say okay, Russia and China, you want to store gold, we’ll settle Bitcoin trading. Like a boom, this totally explodes the bond market. We would have an economic boom,” he said.

Bitcoin’s threat to the dollar

At the same time, Gromen acknowledged that Bitcoin’s growth threatens the dollar but ruled out the possibility of the asset replacing it. In this line, he warned that Bitcoin’s growth should not be seen as a bubble.

“It’s not a bubble, it tells you what’s going on. It’s a very good indicator of liquidity ups and downs, so I think it’s a threat. I don’t know if it should necessarily replace the dollar. I don’t think that will be the case,” he added.

The Government Threat to Bitcoin

Additionally, Gromen pointed out that Bitcoin faces a constant risk of being negatively affected by government policies. He noted that while the government may crack down on Bitcoin, the chances of breaking the asset are low while referencing the Chinese government’s efforts to ban the flagship cryptocurrency.

The macroeconomist’s proposal comes as the United States debates the regulation of cryptocurrencies. Along these lines, the White House released its first-ever cryptocurrency framework calling for the regulation of digital assets.

Watch the full interview below:

Disclaimer: The content of this site should not be considered investment advice. The investment is speculative. When you invest, your capital is at risk.

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