Renowned macro investor Luke Gromen believes that if the US were to use either Bitcoin (BTC) or gold as a reserve asset, the price of either would skyrocket. In a recent YouTube video, Gromen explains that the US is suffering from what he calls a “resource curse,” where the country’s primary commodity, the dollar, is produced in large quantities and at a lower cost than any other nation. This dominance in dollar production has led to the financialization of the US economy, causing wealth inequality and political instability. Gromen argues that by replacing Treasuries with either gold or Bitcoin as the primary reserve asset, the US can address this issue. This shift would require a significant amount of gold or Bitcoin to settle the US trade deficit and current account deficit, ultimately driving the price of either asset up considerably in dollar terms.
