Could Bitcoin Become the U.S. Economic Strategy of the Future?

In an interview with Natalie Brunell, macroeconomist Luke Gromen discussed the potential economic impact of Donald Trump’s proposal to accumulate up to a million Bitcoin.

Trump has referred to Bitcoin as “the new oil,” which Gromen sees as more than a campaign statement, suggesting a possible strategic role for Bitcoin similar to oil’s influence on the U.S. economy in the 1970s. Gromen speculated that Trump’s Bitcoin accumulation plan might signal a broader economic strategy involving Bitcoin’s role in addressing U.S. fiscal issues.

Gromen drew a parallel between Bitcoin and the oil price surge of the ’70s, which helped stabilize the U.S. economy by backing debt with petrodollars. He pointed out that just as oil inflation helped the U.S. manage its deficits and the transition off the gold standard, Bitcoin could serve a similar function by inflating in value and boosting the demand for stablecoins.

These stablecoins could, in turn, be used to purchase U.S. Treasury bills, potentially solving the U.S. debt crisis. He also noted recent reports from the Treasury Borrowing Advisory Committee that highlighted how digital assets could be leveraged to finance the U.S. fiscal shortfall.

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Additionally, Gromen referenced Paul Ryan’s recent op-ed, where the former House Speaker argued that stablecoins could help the U.S. manage its debt. This reinforced Gromen’s view that there is growing political support for using digital assets to stabilize the economy.

While Gromen stressed that his theory is speculative, the alignment of political and economic developments, including growing support for digital assets and the integration of Bitcoin into U.S. fiscal strategies, makes it a noteworthy possibility. He concluded by expressing confidence that these converging factors could lead to a significant role for Bitcoin in U.S. economic policy in the near future.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.