Ki Young Ju, CEO and founder of CryptoQuant, has highlighted that President-elect Donald Trump’s approach to Bitcoin will likely hinge on the economic status of the United States and the global perception of the US dollar’s strength. Ju points out that assets like gold and Bitcoin typically see a price increase when investors feel that US economic dominance is under threat. Despite the notable depreciation of over 90% in the US dollar’s value since 1913, it remains the top store of value among fiat currencies, commanding investors’ confidence.
Ju suggests that the current sense of economic strength underlines the improbability of Trump’s administration adopting Bitcoin as a strategic reserve to uphold the dollar’s supremacy. Instead, it could prompt a retreat from pro-Bitcoin policies, a standpoint reinforced by Trump’s emphasis on the power gap between the US and other nations, which sustains capital inflow into the dollar.
The perception of the US dollar as a secure asset is widespread, with many Koreans opting for it over gold or Bitcoin, especially as the Korean won weakens. This trend is echoed in emerging economies, where the US dollar and dollar-pegged stablecoins are favored for storing value amidst hyperinflation.
Stablecoins, such as those discussed by Paxos CEO Charles Cascarilla, integrate the speed and connectivity of the internet, enhancing the utility of the US dollar and solidifying its role in the blockchain economy. In places like Turkey, facing steep inflation rates, the reliance on stablecoins as a percentage of GDP is significant. Similarly, Chainalysis reports that over half of digital assets sent to several Latin American nations last year were in stablecoin form, underscoring their critical role in these economies.
