Bitcoin and Gold Can Boom While US Struggles With Huge Fiscal Problems

Bitcoin and gold will be the ones shining while the US is struggling with enormous fiscal issues. Check out the latest reports about this matter below to learn all that’s available about the latest crypto moves.

Luke Gromen, an experienced macro investor, believes that both Bitcoin (BTC) and gold can thrive in the face of mounting fiscal issues within the United States economy.

In a recent interview on the Blockworks Macro YouTube channel, Gromen stated that extensive quantitative easing and a potential shift from the Federal Reserve could create an environment where assets such as gold, oil, and BTC can prosper.

Gromen suggests that while short-term treasuries may do well if the Fed cuts rates, gold, Bitcoin, and oil are likely to perform better.

Even if rates are not cut, Gromen believes that “not QE” programs such as treasury buybacks or bank term funding will still benefit gold, oil, and Bitcoin.

According to Gromen, gold and BTC are attractive assets during times of fiscal uncertainty because of their fixed supply and ability to increase in face value.

When a nation and its allies have fiscal problems and the reserve currency issue is at play, gold and Bitcoin can perform particularly well.

A macroeconomist has suggested that the BRICS alliance (Brazil, Russia, India, China, and South Africa) launching a gold-backed currency could weaken the US dollar’s position as the world’s reserve currency.

However, they also stated that despite these potential changes, the dollar will likely remain the reserve currency.

The economist explained that the current system of using the dollar as the reserve currency was chosen after World War II, but there was an alternative proposal called the bancor system.

The bancor system would have used a neutral reserve asset made up of commodities, but the world went with the dollar instead.

The economist believes that recent actions by BRICS suggest a move back towards the bancor system, where gold and a floating price in all currencies would be the primary reserve assets.

Bitcoin is trading for $27,132 at the time of writing this article.