Bitcoin As A United States’ Strategic Asset Is Bad News: Here’s Why

As a seasoned researcher with over two decades of experience in financial markets and technology, I have witnessed the evolution of digital currencies from a mere curiosity to a global phenomenon. The recent surge in Bitcoin (BTC) prices since Donald Trump’s endorsement has piqued my interest, leading me to delve deeper into this topic.


Since the unsuccessful attempt on his life, former President Donald Trump’s bid for a political comeback has been accompanied by surging values in Bitcoin and many other cryptocurrencies. Known for his pro-crypto stance, Trump made an appearance at the Bitcoin Conference in Nashville, delivering a speech to the enthusiastic crowd.

BTC Inching Higher On Donald Trump’s Endorsement

As Trump’s chances of winning the presidency in November increase, the price of Bitcoin keeps climbing. The cryptocurrency is now just below its all-time high, with a value close to $70,000 on the chart. If Bitcoin manages to break through the $72,000 resistance level during the next close, it could reach new record highs.

Bitcoin As A United States’ Strategic Asset Is Bad News: Here’s Why

1. Potential elements might escalate the value of the world’s most prized coin within the next few months, potentially if Trump regains presidency. While the former leader has expressed interest in crypto advancements, the possibility of his government viewing Bitcoin as a tactical resource is an additional motivation. Nevertheless, this perspective is not universally accepted.

1. Joe Valenzuela, a high-ranking official at Dash, believes that endorsing Bitcoin by the U.S. government as a strategic asset is not advisable. If implemented, such a move could trigger significant changes.

The significant disruption we’re witnessing could greatly affect Bitcoin’s primary goal as a digital currency. Launched in early 2009, Bitcoin was designed to operate as a peer-to-peer (P2P) electronic payment system, providing an alternative to traditional currencies like the US Dollar and Euro.

Bitcoin As A Strategic Asset Is Bad: Here’s Why

In a recent post, the Dash executive contended that treating Bitcoin on par with gold as a strategic asset in the U.S., particularly for smaller investors and everyday crypto supporters, could potentially prove detrimental to them.

1. Option: By treating Bitcoin as a critical resource, it’s plausible that governments could increase their money supply to purchase this limited commodity. Such actions would potentially benefit the ruling class and their associates, while the general public might bear the brunt of the economic consequences.

Valenzuela noted that if Bitcoin had achieved widespread acceptance and use as legal tender beyond El Salvador, the ability of leading governments to print money would have been significantly diminished. This is due to the fact that people would likely prefer to hold their assets in Bitcoin rather than in traditional currency, providing an effective hedge against inflation.

1. In its current state, there’s a possibility that Bitcoin could be embraced and accumulated by the mainstream, leaving merchants and users potentially excluded, without access to a means for protection against inflation.

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2024-07-29 22:42