President Donald Trump expressed support for Bitcoin, stating that it positively impacts the U.S. economy by alleviating pressure on the dollar.
Bitcoin as an Economic Relief Valve
In a White House press conference, Trump noted the importance of Bitcoin for the global economy, mentioning its growing role in economic competition.
“It has become amazing,” he said.
“I mean, it is the jobs that it produces, and I notice more and more you pay in Bitcoin. People are saying it takes a lot of pressure off the dollar, and it is a great thing for our country.”
Structural Deficits and Threats to Dollar Value
As the issuer of the world’s reserve currency, the U.S. faces the need to maintain global liquidity, often leading to structural deficits. This phenomenon is financed by expanding the money supply, which temporarily supports global markets but eventually undermines the dollar, diluting the purchasing power of each dollar. Data from TradingView confirms that the M2 money supply in the U.S. has steadily increased, reinforcing inflationary concerns.
Crypto Gaining Political and Economic Ground
Trump's support for Bitcoin may indicate a growing convergence between cryptocurrencies and mainstream economic policy. While the idea of settling sovereign debt with Bitcoin remains controversial, his remarks underscore Bitcoin’s rising profile in global financial discourse. With mounting deficits and declining confidence in fiat systems, digital assets like Bitcoin may increasingly be viewed as hedges against traditional financial risks.
Trump's support for Bitcoin highlights its growing significance in the context of financial instability and debt issues. This serves as an indicator of broader economic changes happening globally.
