Pioneering bitcoin has found another ally in the macroeconomist Luke Grumen who recently claimed that the US could gain benefits if it began to view the digital currency as an asset rather than some kind of threat.
Gromin made his statement while appearing on a podcast on September 14 hosted by Natalie Brunel.
Grommen is well respected in the world of financial research for its ability to provide comprehensive analysis of objective and global macroeconomic trends.
According to Gromin, should economic rivals China and Russia choose to hoard gold, that would make bitcoin an option and give the US a special advantage that such a scenario could lead to an “explosion” in the bond market.
“We’re going to have an economic boom,” said the macroeconomist.
Is Bitcoin a Threat to the US Dollar?
Sadly, Gromin also pointed out a sad fact that has haunted the alpha cryptocurrency for a long time.
US policy makers, at the moment, view digital assets as a threat to the country’s fiat currency – the US dollar.
Gromin’s statement comes just days after US President Joe Biden’s first crypto-regulatory framework was launched amidst circulating news reports about the downturn and volatility that has now plagued the crypto arena.
The Biden administration has recently become active in pursuing more control of cryptocurrencies through laws due to the increasing popularity of the asset class.
Macroeconomist Luke Gromen. Image: Techie + Gamers
It can be recalled that at a 2019 hearing, Congressman Brad Sherman expressed his feelings and concerns about the potential dangers posed by bitcoin to the US currency, which, for decades, was considered the world’s standard reserve currency.
Sherman said that if cryptocurrency does not succeed, it will cause investors to lose a lot of money into the cliff. If he really succeeds and achieves his goals, it could replace the US dollar or interfere with its role as almost the “world’s only reserve currency”.
Such ideals have proven useful in the country’s reluctance to take a more positive perspective on Bitcoin.
Bitcoin growth is not a bubble, says macroeconomist
Although Bitcoin has been staring at a 7.5% drop in price in the past seven days and is trading at $20.079 as of this writing according to Coingecko data, its growth should not be viewed as a “bubble.”
Indeed, Grumen acknowledged the threat that growth could pose to the dollar. However, the macroeconomist was quick to dismiss the idea of replacing bitcoin with the established currency.
Grumin was adamant that this would never happen, saying it was not necessary either. This helps reinforce his suggestion that the US should start looking at Bitcoin as an asset now that there is a high probability that China and Russia will put their chips in gold.
BTC total market cap at $382 billion on the daily chart | Source: TradingView.com Featured image from Foodforfitness.co.uk, Chart: TradingView.com