Ki Young Ju: The US Will Not Create a Bitcoin Reserve

Ki Young Ju: U.S. Bitcoin Reserve Unlikely Despite Trump's Promises

Skepticism About a U.S. Bitcoin Reserve

Ki Young Ju, CEO of CryptoQuant, has expressed doubt over the prospects of the United States creating a strategic Bitcoin reserve, despite campaign promises from President-elect Donald Trump. While acknowledging the appeal of such an initiative, Ki believes the U.S. is unlikely to adopt Bitcoin as a reserve asset unless its economic dominance is seriously threatened.

"The U.S. economy continues to grow while other countries stagnate. For Bitcoin to be considered as a reserve asset, the U.S. must perceive its global dominance as being under real threat," Ki explained.

Drawing parallels with historical patterns, Ki noted that during times of perceived economic vulnerability, the U.S. has seen gold prices rise as a hedge against uncertainty. In the late 1990s, economist Peter Schiff and other "gold bugs" argued for a return to the gold standard, similar to how Bitcoin advocates today champion cryptocurrency as the ultimate reserve asset.

However, the U.S. deliberately avoided returning to the gold standard and allowed it to fade into history over the past 50 years. Ki suggests that Bitcoin now occupies the "ideological space" once held by gold, but that doesn't guarantee adoption as a reserve asset.

During his campaign, Donald Trump promised to create a national Bitcoin reserve, a move that helped garner support from crypto enthusiasts. Following his election victory, Bitcoin reached a new all-time high of $108,300, spurring excitement in the cryptocurrency community.

However, Ki speculates that Trump's intentions may not be as genuine as they seem. If Donald Trump strengthens the dollar's primacy and improves his approval ratings, he may backtrack on his Bitcoin promises, citing changing priorities.

"It is unclear whether Trump's mention of Bitcoin as a strategic asset was a genuine plan for a Bitcoin reserve or simply a calculated move to secure votes," Ki questioned.

While federal adoption remains uncertain, there has been momentum at the state level. Ohio lawmakers recently introduced a bill to include Bitcoin in a sovereign wealth fund, giving the Ohio Treasury the authority to purchase the cryptocurrency. However, the idea has met resistance, with critics like the Bloomberg editorial board dismissing it as a financial scam.

Ki argues that the current market sentiment reinforces U.S. confidence in its economic superiority, reducing the urgency to adopt Bitcoin as a strategic reserve. However, he acknowledges Bitcoin's growing role as a store of value, filling the gap left by gold in the digital age.

Ki Young Ju remains skeptical that the U.S. will establish a Bitcoin reserve in the near term, as it requires a significant shift in economic priorities. For now, Bitcoin continues to thrive on growing adoption and speculation, but its role as a state-backed reserve asset remains speculative.

"The idea of a Bitcoin reserve is compelling, but for it to materialize, the U.S. must see its economic dominance truly challenged," Ki concluded, emphasizing that the current narrative surrounding Bitcoin may still be driven more by political rhetoric than actionable strategy.