- 2024-06-15
- News
Sino-US Financial Showdown: Can Bitcoin Emerge as a Weapon Against China?
Ever since the U.S. debt surpassed 36 trillion dollars, the global community has cast doubt on America's ability to repay its debt.
However, the United States seems not particularly worried about the massive debt, and it appears to have already planned an exit strategy. The fact that Bitcoin has approached the $100,000 mark has left the world baffled, wondering what the U.S. is up to. Is the U.S. really planning to default on its debt, abandon the dollar, and opt for Bitcoin instead?
The Driving Force Behind Bitcoin's Surge
The capital market, whether it's the U.S. dollar index or the U.S. stock market, has seen varying degrees of increase.
Yet, within the U.S. capital market, the most significant increase is still Bitcoin, which was wildly speculated on a long time ago.
Especially recently, the Pennsylvania state legislature passed a bill officially proposing to list Bitcoin as a strategic reserve currency.
Shortly after the bill was passed, Bitcoin experienced a sudden surge, even attempting to break through the key resistance level of $100,000.
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It's a pity that although Bitcoin wanted to break through the $100,000 mark, U.S. investors still have many concerns about Bitcoin becoming a strategic reserve currency.
Although such concerns exist, more people are still focusing on whether Bitcoin will be fully legalized like the dollar and become a strategic reserve currency in the U.S. after Trump officially becomes the President of the United States next year?
Moreover, the bigwigs of the Bitcoin encryption organization have carefully selected members of Congress who support the legalization of Bitcoin.
These Bitcoin magnates are behind the scenes, financially supporting those who support the legalization of Bitcoin.
It can be said that the Bitcoin encryption organization has gone to great lengths to make Bitcoin stand shoulder to shoulder with the dollar.
However, Bitcoin is not the dollar, and compared to the stability and security of gold, Bitcoin still has many hidden dangers in this regard.
Now that the U.S. debt has exceeded 36 trillion dollars, the monetary policy of the Federal Reserve affects the rise and fall of the U.S. dollar index, and the changes in the U.S. dollar index mean that global currencies must also change.
The United States is now facing many domestic issues, especially the principal and repayment issues of U.S. debt, which severely tests America's credit. Bitcoin wants to be legalized at this time, and in fact, it is still related to the new layout of the United States.
Will the United States Default?
The new layout of the United States is mainly based on the current reality of the United States. We all know that the U.S. debt has exceeded 36 trillion dollars, and of course, there are other issues, such as fiscal deficits and inflation.
In terms of solving the current difficulties faced by the United States, the attitude is very clear, one is to increase trade tariffs, and the other is to attract American companies back to the United States to revitalize American manufacturing.
Musk has become the first person in charge of the U.S. government's efficiency department, wanting to reduce the functions of the U.S. government departments and reduce the financial expenditure of the U.S. government.
All these ideas require the use of the dollar. Although the United States can print dollars without limit, on the issue of the dollar...
The U.S. government mainly issues U.S. Treasury bonds and allows other countries to purchase them to obtain dollars for economic development.
The continuous expansion of the U.S. debt scale affects the credit of the United States, and if the Federal Reserve really cuts interest rates to the bottom, U.S. inflation is likely to rise again.
The U.S. government, and even the Federal Reserve, do not want this situation to occur, so the Bitcoin encryption organization now wants to legalize Bitcoin, which can be said to point out a new way for the United States.
This move has been used by the United States a long time ago. If you carefully study the history of U.S. economic development, in the last century, when the U.S. economy was also trapped in a debt dilemma...
The United States, regardless of everything, regardless of the Bretton Woods system, the relationship between the dollar and gold, resolutely decoupled the dollar from gold, and then the United States aimed at oil, insisting on deeply binding the dollar and oil together.
Of course, under this operation, the dollar accelerated devaluation, but the United States also used this trick to successfully default on U.S. debt.
Now the United States wants to repeat the old trick, decoupling the dollar from oil, and then binding the dollar with Bitcoin, with two currencies running in parallel.
Use Bitcoin to get rid of U.S. debt, so that the United States will not have debt troubles, and previously a large amount of dollars gathered in the U.S. banking industry, the United States also just successfully seized these dollars.
It has to be said that the United States' idea is very good, but for the creditor countries holding a large amount of U.S. debt, they may not be willing!
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