Ki Young Ju, CEO of CryptoQuant, said that the US government $93,746.2 He warned that motivations for creating the standard may be different from what investors expected.
The Future of Bitcoin Reserve
Ki Young Ju, manager of the on-chain analysis platform, stated that he personally supports the idea of the Bitcoin Standard. However, he has doubts about whether the United States will accept this standard as a strategic asset. According to Ju, the United States is not expected to make a serious move towards Bitcoin unless its global economic supremacy is threatened by another country.
Bitcoin Standard refers to the US government’s idea of using Bitcoin as a reserve asset. Ju noted that even if this were possible, the government’s intentions would differ greatly from those of Bitcoin supporters and investors.
US Bitcoin Plans
Ju said it is likely that the government purchased Bitcoin for risk management or economic leverage purposes. However, he added that this motivation is far from being seen as a means of defending the monetary system as Bitcoin advocates imagine. With global capital flowing into the US, many consider the dollar’s dominance to be solid.
“I personally support the idea of Bitcoin Standard. However, I question whether the US would adopt Bitcoin as a strategic asset unless there was a situation that truly threatened its global economic dominance. “It is conceivable that the US government could purchase Bitcoin for risk management or economic leverage, but their motivations would not be what Bitcoin supporters imagine.”
Ju noted that if President-elect Donald Trump rebuilds the strength of the US dollar during his term, Trump may change his strongly supportive stance towards Bitcoin.
“Trump may not maintain his strong Bitcoin-friendly stance during the campaign if they manage to maintain the resilience of the US economy, consolidate the dollar’s dominance and increase its popularity.”
CryptoQuant CEO says Trump could weaken Bitcoin support in a scenario where the dollar strengthens.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
