Economist: Trumps national Bitcoin reserve plan has no real economic benefits

2024/07/31 20:26

Odaily News Former US President Donald Trump announced that he would establish a national Bitcoin reserve program if he is re-elected, but James Angel, an economist at Georgetown University who specializes in financial markets, said, I dont see any real economic benefits. The actual benefit is that Bitcoin will make Bitcoin enthusiasts vote for Trump. James Angel pointed out that the view that investing in Bitcoin can offset the loss of spending power caused by inflation depends on two unreliable assumptions: one is that the price of Bitcoin will rise; the other is that the government will be able to sell Bitcoin back to US dollars at some stage without causing a market crash. The US government can push up the price by buying Bitcoin, so that it looks like the government has made a lot of money, but once the government starts selling Bitcoin for profit, the price will fall again. (Wired)

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