Can Trump's Bitcoin Bet Save America?

The American economy is sinking, and criticism is pouring in. In the face of this storm, some voices are rising to denounce the excesses, while others call for action. Among them is Donald Trump, who proposes an alternative to save the economy: Bitcoin. Could this be a lever to restore American power or a risky bet to confront the national debt? Meanwhile, the prospect of a strategic reserve in Bitcoin, although controversial, is sparking debate.

Trump and the Bitcoin Reserve: a risky bet?

Mike Novogratz, CEO of Galaxy Digital, is not very optimistic about the creation of a strategic Bitcoin reserve under a Trump administration. For him, the chances remain slim, despite the historic rise of BTC. The institutional constraints, particularly the conflicts between branches of government, could well block this project even before it takes shape.

Indeed, according to him, the US dollar does not need crypto support to maintain its status as the world’s reserve currency.

Galaxy Digital’s Michael Novogratz said there is a low likelihood that the US will set up a Bitcoin strategic reserve as proposed by President-elect Donald Trump https://t.co/8vcZuFnaPS

— Bloomberg Crypto (@crypto) November 13, 2024

Novogratz sums it up: “The United States, with the strongest army and a dominant economy, do not need Bitcoin to support the dollar.”

Nonetheless, he admits that if such a reserve were established, it could propel the price of BTC to unprecedented heights, up to $500,000. This bold project would make the United States a pioneer in the field of digital assets, but the main obstacle remains the lack of political unity, rendering this dream improbable.

• US national debt: nearly $36 trillion;
• Inflation in October: 2.6%, on the rise;
• Bitcoin price at $89,461 at the time of writing: a continuous rise despite political uncertainties.

The scenario of a global rush to Bitcoin: a prophecy of $500,000?

If a strategic Bitcoin reserve were established in the United States, Novogratz envisions an explosive scenario where other countries would be forced to follow. “The race would be on!” he announces.

With El Salvador and Bhutan as pioneers, several countries have already jumped on the Bitcoin bandwagon, accumulating millions in crypto-assets. El Salvador, which legalized Bitcoin in 2021, shows impressive growth in its holdings, and Bhutan has reached over a billion dollars in crypto.

For the United States, this strategy would be twofold: a way to secure a part of their national reserve while asserting their position as a technological leader. However, the idea of such an investment remains speculative for now. Without political consensus, this “beacon crypto” could remain a utopia for Trump and his supporters.

However, the United States is facing not only a colossal debt but also galloping inflation, rising from 2.4% in September to 2.6% in October. Could Bitcoin remedy this ailment?