The conversation around Bitcoin’s potential role in the US financial system has been gaining traction, with CryptoQuant CEO Ki Young Ju recently questioning the need for a Bitcoin standard unless confidence in the dollar significantly diminishes.
Drawing parallels to past debates over the gold standard, Ki expressed his support for a Bitcoin standard but raised doubts about the US adopting it unless the dollar’s dominance is truly threatened.
While Bitcoin is seen as a potential hedge against inflation, the current economic landscape may not require a shift to a Bitcoin standard, according to Ki’s skepticism.
Despite advocating for the US to accumulate 1 million BTC by 2050 to address national debt and bolster economic resilience, Ki acknowledges the challenges associated with Bitcoin’s volatility and the complexities of integrating it into the country’s financial reserves.
Former President-elect Donald Trump’s proposal to establish a national Bitcoin reserve during his presidential campaign has sparked discussions about Bitcoin’s role in the US economic strategy, leading to market optimism and record price gains for Bitcoin.
Opinions remain divided
While some analysts view Bitcoin as a potential safeguard against inflation, others argue that the dollar’s global dominance remains secure as capital continues to flow into US markets.
Recent trends show that investors in countries like South Korea are favoring the dollar over alternative assets like Bitcoin or gold during times of economic uncertainty.
Ki predicts that Bitcoin could become a mainstream currency by 2030, driven by institutional adoption and reduced volatility, aligning more closely with its original purpose as a peer-to-peer electronic cash system.
The future adoption of Bitcoin at a strategic level by the US may hinge on shifts in global economic power and confidence in the long-term stability of the dollar, according to Ki.
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