- Renowned economist Alex Kruger says that Bitcoin has cemented its role as a hedge against the continued fiat devaluation and an impending fiat system collapse.
- Bitcoin has dipped 4% to $66,400 as the pump effect from Trump’s speech wears off; however, the Republican Party’s backing for BTC is still as strong.
We live in an uncertain time, with conflicts in Eastern Europe and the Gaza Strip, one of the most consequential elections in the US, the rise of a powerful alternative economic bloc in BRICs, and more shaping the news. The global economy is taking a hit, and with it, fiat is on the receiving end. According to economist Alex Kruger, this makes it the best time to hold Bitcoin as a hedge against the impending collapse of the fiat system.
Kruger joined the Blocmates Orange podcast recently to discuss Bitcoin, its practicality, Layer 2s, sidechains, and the crypto’s relation to the fiat system alongside Rich Rines, a contributor to Core DAO, which combines Bitcoin’s security with Ethereum’s scaling.
Kruger maintained his prediction that the US economy is spiraling towards its doom, noting that even Federal Reserve chair Jerome Powell has admitted that the country’s fiscal path is unsustainable.
The economist says that if the US is ever concerned about the value of its fiat currency or whether it can sustain its ballooning debts, which is already happening, then “you want to be long Bitcoin, and you want as much Bitcoin as possible for as long as you’re not screwing up your portfolio.”
Last year, the Bank of America warned that the US could be accruing $1 trillion worth of debt every 100 days, which is simply unsustainable and will soon blow up. Even the Fed chair has acknowledged that the country “is running a very large deficit” and “while the level of debt is not unsustainable, the path that we’re on is unsustainable.”
Kruger added that all these factors culminate in Bitcoin being a “potential reserve asset, store value and the increasing adoption of Bitcoin as digital gold and Bitcoin as a hedge against debt out of control and the dollar imploding.”
Bitcoin Dips 4%
At press time, BTC trades at $66,391, dipping 4% in the past day for a $1.3 trillion market cap. It has sparked a wider market retracement, with the overall market cap down 3.3% to $2.4 trillion.
Most major tokens lost between 1-5% in the past 24 hours, with XRP the only outlier in the top 20 after gaining 2.3% to cement its position above USDC.
The dip was not unexpected after the top coin surged in anticipation of Donald Trump’s appearance at the Bitcoin Conference. The Republican presidential candidate didn’t disappoint, promising the firing of anti-crypto Gary Gensler, BTC as a reserve asset for the US and protection for miners, as we reported. However, the ‘sell the news’ effect was bound to hit the crypto world, and it has.
However, despite the price dip, the Republican Party has continued to back crypto. Tennessee Senator Bill Hagerty told Bloomberg earlier today that under Trump’s presidency, “Bitcoin has to thrive here.”
