In the aftermath of the November US elections, the cryptocurrency community is buzzing with excitement as Donald Trump, a candidate who supports Bitcoin (BTC) and the crypto industry, has become the President-elect. Throughout his campaign, Trump made it clear that he backs crypto, even pledging to implement policies that include establishing a national Bitcoin reserve.
As the inauguration approaches, Ki Young Ju, a well-respected figure in the crypto world and CEO of CryptoQuant, has weighed in on the likelihood of Trump following through on his crypto-friendly pledges.
Trump Could Pivot from Bitcoin Support to Protect Dollar, Says Young Ju
In a December 28th social media post, Ki Young Ju discussed the chances of Trump adhering to his pro-Bitcoin promises, particularly the notion of adopting BTC as a strategic reserve asset. He pointed out that when gold was the world’s financial benchmark, its price often surged whenever the US felt economically threatened. For the past five decades, however, the US dollar has taken over as the global standard, with America actively resisting a return to a gold-based system by utilizing numerous tactics to maintain economic growth.
Ki Young Ju observed that Bitcoin is gaining traction as an ideological successor to gold, acting as a shield against inflation and other economic challenges that fiat currencies like the US dollar might face. Nonetheless, he argues that the US government would consider Bitcoin as a reserve asset only if it felt its economic dominance was in jeopardy. At present, market sentiment suggests no such threat exists, with substantial capital still flowing into the US dollar.
Consequently, Young Ju proposes that the US might acquire Bitcoin chiefly for risk management or economic leverage, rather than as a reserve asset. If Trump decides to prioritize the supremacy of the US dollar, it could mean that his administration might not see much progress on the pro-Bitcoin policies he championed, even if this shift wouldn’t significantly affect his loyal supporters.
Given Trump’s recent comments emphasizing the strength of the American economy just before his inauguration, there’s a strong possibility that his pro-Bitcoin agenda might have been more about rallying votes than a genuine commitment to policy. Despite the promises made at the National Bitcoin Conference, Young Ju remains skeptical about Trump’s intentions, suggesting they could merely be strategic electoral pledges.
BTC Price Overview
As for Bitcoin’s current market status, it is trading at $95,259, showing a 0.76% increase over the past 24 hours. However, its trading volume has seen a 53.80% decrease, standing at $24.12 billion.
Featured image courtesy of PCMag, chart provided by TradingView
