Gromen noted that adopting Bitcoin as a sovereign asset can give the U.S. an added advantage and create an economic boom while providing an edge over global competitors like China and Russia, he said during a Natalie Brunell podcast appearance on September 14. According to Gromen, Bitcoin can be an option for the U.S., especially if China and Russia opt to pile gold, a scenario that would translate to a ‘blow-up’ in the bonds market. However, the macroeconomist pointed out that at the moment, policymakers in the U.S. consider Bitcoin a threat to the dollar.
Bitcoin’s threat to the dollar
At the same time, Gromen acknowledged that the growth of Bitcoin is threatening the dollar but ruled out the possibility of the asset replacing it. In this line, he warned that Bitcoin’s growth should not be considered a bubble.
Government’s threat to Bitcoin
Furthermore, Gromen pointed out that Bitcoin faces a constant risk of being negatively impacted by government policies. He noted that although the government might crack down on Bitcoin, the chances of breaking the asset are low while referencing the Chinese government’s push to outlaw the flagship cryptocurrency. The macroeconomist’s proposal comes when the United States is debating the regulation of cryptocurrencies. In this line, the White House released its first-ever cryptocurrency framework calling for regulation of digital assets. Watch the full interview below: Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
