The chief executive of market intelligence platform CryptoQuant is warning investors that the US government’s motivations for creating a Bitcoin (BTC) standard may be different from what they expect.
In a new thread on the social media platform X, Ki Young Ju says that for the US to seriously consider a BTC standard, it would have to see its global economic dominance threatened by another nation.
“I personally support the idea of Bitcoin Standard. However, I question whether the U.S., while continuing to grow as other economies stagnate, would adopt Bitcoin as a strategic asset. For the debate to gain serious momentum, the U.S. would need to see its global economic dominance genuinely threatened. At present, market sentiment suggests confidence in the U.S.’s continued supremacy.”
The Bitcoin Standard – which is also a book written by Saifedean Ammous – refers to the idea that the US government could use Bitcoin as a reserve asset.
According to Ju, while it’s in the realm of possibility that the government creates a BTC standard, even if it did, the government’s intentions would vastly differ from that of Bitcoin bulls and investors, though no specifics were mentioned.
“While it’s conceivable that the U.S. government could purchase Bitcoin for risk management or economic leverage, its motivations would likely differ greatly from what Bitcoiners imagine.
The notion of buying Bitcoin to prepare for a Bitcoin Standard or as a tool to defend the dollar system seems far removed from the current reality. With global capital flowing into the U.S., many still believe the dollar’s dominance is secure.”
Ju concludes by noting that if President-elect Donald Trump’s term is successful and he rebuilds the strength of the US dollar, he could change his pro-BTC stance.
“If Trump succeeds in showcasing U.S. economic resilience, reinforcing the dollar’s supremacy, and boosting his approval ratings, it’s unclear if he would maintain the strong pro-Bitcoin stance he demonstrated during his campaign. He could easily step back from his Bitcoin advocacy, citing changing priorities, without alienating his voter base.”
Earlier this month, Fed Chair Jerome Powell said that the government is not legally allowed to hold Bitcoin as a reserve asset and has no plans to change the law, causing the crypto king to see a significant dip in price.
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