Former U.S. President Trump recently praised Bitcoin (BTC) for its positive impact on the U.S. economy during a White House press conference on Friday, including its role in "relieving pressure" on the dollar.
The President stated that he is a fan of the crypto industry, which has developed into a sector that cannot be ignored due to geopolitical competition. Trump added:
Digital asset researcher Anders X believes that Trump's comments refer to the Triffin dilemma, which is the conflict of interest between being the issuer of the global reserve currency, maintaining an appropriate trade balance, and ensuring the long-term value of the currency.
As the issuer of the global reserve currency, the U.S. must continuously maintain a trade deficit to meet global demand for the dollar, allowing foreign entities to settle trade and use the dollar as a store of value against the rapid depreciation of local fiat currencies.
This provides a short-term solution to meet global liquidity needs, but at the cost of the long-term value of the currency, as the ongoing trade deficit is financed through money creation, which dilutes the value of the dollar.
Trump had previously suggested the idea of repaying national debt with Bitcoin, implying the asymmetry between inflationary dollars and assets with a capped supply.
However, critics argue that even if the U.S. Treasury owned the entire BTC supply, it would still be insufficient to cover the $37 trillion and growing U.S. government debt, which will only continue to rise, ultimately leading to a collapse in the value of the dollar.
Macroeconomist and Bitcoin advocate Lyn Alden coined the phrase "nothing can stop this train"—referring to the high likelihood that global governments will never stop printing money and undermining the future value of their national currencies.
The U.S. Dollar Index (DXY), which tracks the strength of the dollar against a basket of major fiat currencies, hit a three-year low on Thursday.
As the dollar weakens, U.S. government bond yields remain high, indicating that investor confidence in the U.S. government's creditworthiness and debt sustainability is deteriorating.
Related: Missiles fly, but Bitcoin remains strong, revealing BTC's power amid global chaos.
This article does not contain investment advice or recommendations. Every investment and trade involves risk, and readers should conduct their own research when making decisions.
Original article: “Former U.S. President Trump: Bitcoin (BTC) Relieves Pressure on the Dollar”
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