According to macroeconomist Luke Gromen, the United States might profit from accepting Bitcoin (BTC) rather than regard it as a threat.
During an interview on a podcast hosted by Natalie Brunell on September 14, Gromen said that embracing Bitcoin as a sovereign asset may provide the United States with a competitive edge over global rivals such as China and Russia.
Bitcoin is an alternative for the United States, according to Gromen, particularly if China and Russia decide to stockpile gold, a situation that would cause a ‘blow-up’ in the bonds market. However, the macroeconomist said that now, U.S. authorities see Bitcoin as a danger to the currency.
Bitcoin might be a sovereign asset of the United States, and it could be a really beneficial asset for the country. It does not have to constitute a danger in the eyes of U.S. financial authorities, but I believe they do. It depends on the potential uses. If we came out and said, “Okay, Russia and China, if you want to store gold, we’ll settle trade in Bitcoins,” we would use Bitcoins to settle trades. It completely detonates the bond market…>. We would have an economic expansion, he predicted.
Gromen recognised that the emergence of Bitcoin poses a danger to the currency but ruled out the idea of Bitcoin replacing the dollar. In this statement, he cautioned that the expansion of Bitcoin should not be deemed a bubble.
“It’s not a bubble, it’s a report of what’s occurring. It has been a highly accurate indication of rising and falling liquidity, thus I consider it a danger. I’m not certain that it needs to replace the dollar. “I don’t think so,” he continued.
In addition, Gromen highlighted that Bitcoin is always in danger of being adversely affected by government policy. In reference to the Chinese government’s efforts to prohibit Bitcoin, he said that despite the possibility of a government crackdown, the likelihood of Bitcoin’s demise is minimal.
The macroeconomist’s idea comes at a time when the United States is discussing how to regulate cryptocurrencies. In this sentence, the White House issued its first-ever cryptocurrency framework proposing the regulation of digital assets.
Also Read: ApeCoin may leave this market when BAYC proposal voting begins
