Bitcoin and Gold Can Thrive Amid US Fiscal Issues, Says Macro Investor Luke Gromen
According to macro investor Luke Gromen, both Bitcoin (BTC) and gold have the potential to flourish as fiscal problems continue to mount within the US economy. In an interview on the Blockworks Macro YouTube channel, Gromen explains that ongoing quantitative easing and a possible shift from the Federal Reserve will create an environment favorable for assets like gold, oil, and BTC.
Gromen suggests that even if the Fed cuts rates, short-term treasuries may not perform as well as gold, Bitcoin, and oil. He believes that “not QE” policies or other forms of monetary intervention will benefit these assets due to their fixed supply and ability to increase in value.
BRICS’ Gold-Backed Currency Could Weaken the US Dollar
Gromen also discusses how the BRICS alliance (Brazil, Russia, India, China, and South Africa) potentially launching a gold-backed currency could weaken the US dollar’s status as the world’s reserve currency. He argues that moving towards a system similar to John Maynard Keynes’ bancor system, which includes a neutral reserve asset made up of commodities like gold, would be more appropriate.
While Gromen acknowledges that the dollar is still the global reserve currency, he believes that gold and floating prices in all currencies will become primary reserve assets in the future.
Bitcoin Price
At the time of writing, Bitcoin is trading at $27,132.
Hot Take: Bitcoin and Gold Positioned for Success Amid US Fiscal Problems
In a recent interview with macro investor Luke Gromen, he shared his insights on how Bitcoin and gold can thrive amidst mounting fiscal issues in the US economy. Gromen believes that ongoing quantitative easing and potential policy shifts from the Federal Reserve will create a favorable environment for assets such as gold, oil, and BTC. He argues that these assets, with their fixed supply and potential for value appreciation, perform well during times of fiscal instability. Furthermore, Gromen discusses the possibility of BRICS launching a gold-backed currency, which could weaken the US dollar’s position as the world’s reserve currency. Overall, Gromen’s analysis suggests that Bitcoin and gold are well-positioned to succeed in the current economic climate.
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