Why Bitcoin being seen as a strategic asset for the US is considered to be bad 😞

Trump’s Endorsement Boosts BTC Prices

With the likelihood of Trump winning the presidency in the upcoming election, Bitcoin is experiencing a gradual uptrend. The coin is currently hovering around $70,000, inching closer to its all-time high and is less than 10% away from reaching new records. A breakthrough above the $72,000 resistance level could potentially propel the world’s most valuable cryptocurrency to new highs.

Factors Driving Bitcoin’s Potential Growth

Trump’s possible support for crypto innovation is fueling optimism in the market.
Consideration of Bitcoin as a strategic asset by his administration is another contributing factor to its potential rise.

While Trump’s backing of Bitcoin is viewed positively by some, not everyone is in favor of this idea. Joe Valenzuela, a Dash executive, expressed concerns about the implications of categorizing BTC as a strategic asset, believing it could have negative consequences on its original purpose as a peer-to-peer electronic currency and an alternative to traditional fiat money.

Challenges of Bitcoin as a Strategic Asset

Valenzuela argues that designating Bitcoin as a strategic asset alongside gold could have detrimental effects on small investors and retail users. If the government can create more money to purchase Bitcoin, it could lead to further enrichment of those in power at the expense of the general population.

Furthermore, Valenzuela believes that if Bitcoin had been adopted on a global scale as legal tender, it would have served as a better hedge against government-led inflation. However, the risk now is that Bitcoin may become the exclusive domain of the elite, leaving ordinary users without a reliable tool to safeguard their assets against inflation.