Leading cryptocurrency Bitcoin has found another ally in macroeconomist Luke Gromen, who recently argued that the United States could benefit if it starts viewing digital currency as an asset, not a threat. .
Gromen made his statement while appearing on a Sept. 14 podcast hosted by Natalie Brunell.
Gromen is highly respected in the financial research world for his ability to provide comprehensive analysis of global macroeconomic trends and news.
According to Gromen, in the event that economic rivals China and Russia choose to hoard gold, this would make Bitcoin an option and give the United States an advantage especially since such a scenario could lead to an “explosion” of obligations. market.
“We would have an economic boom,” said the macroeconomist.
Is Bitcoin a threat to the US dollar?
Unfortunately, Gromen also pointed out a sad truth that has haunted alpha crypto for so long.
US policymakers, for now, see the digital asset as a threat to the country’s fiat currency – the US dollar.
Gromen’s statement comes days after the first-ever crypto regulatory framework was put in place under US President Joe Biden amid circulating reports of the decline and volatility now plaguing the crypto landscape.
The Biden administration has recently become active in pursuing greater control over cryptocurrencies through legislation due to the growing popularity of the asset class.
Macroeconomist Luke Gromen. Image: Techie + Gamers
It can be recalled that during a hearing in 2019, Congressman Brad Sherman expressed his feelings and fears about the potential dangers that Bitcoin poses for the greenback which for decades has been considered the the world’s main reserve currency.
Sherman said that if cryptocurrency doesn’t work, investors will lose a ton of money down the drain. If it does work and achieves its goals, it could supplant the US dollar or interfere with its role as the quasi “world’s only reserve currency”.
Such ideals proved instrumental in the country’s indecisiveness to have a more positive outlook on Bitcoin.
Bitcoin Growth Isn’t a ‘Bubble’, Says Macroeconomist
Although Bitcoin is eyeing a 7.5% price decline over the past seven days and is trading at $20.079 at the time of this writing according to data from Coingecko, its growth should not be viewed as a ‘bubble’ .
In fact, Gromen recognized the threat that this growth could pose to the dollar. The macroeconomist, however, was quick to discount the idea of Bitcoin replacing the entrenched currency.
Gromen was adamant that it would never happen, saying it was also not necessary. This helps reinforce his suggestion that the United States should start viewing Bitcoin as an asset now that there is a high possibility that China and Russia will deposit their tokens with gold.
BTC total market cap at $382 billion on the daily chart | Source: TradingView.com Featured image from Foodforfitness.co.uk, Chart: TradingView.com