Could Bitcoin be a significant action by the US government and capital to restructure the dollar hegemony?
A bizarre scene recently appeared, just three weeks after Trump took office, Bitcoin surged over 40%, with the price once touching $100,000. Compared to ten years ago, it has increased more than 200 times. The return is enough to outperform any asset globally. Meanwhile, international capital continues to fan the flames, boasting that Bitcoin's price will multiply tenfold again within the next year. At this point, whether insiders or outsiders, knowledgeable or not, can feel that this situation is quite unusual. If we consider what Trump said before taking office about making the US a Bitcoin superpower, it is easy to infer that the recent rise in Bitcoin is strongly associated with US politics. More chillingly, the US is the largest holder of Bitcoin, which means it has enough trading chips, or greater pricing power. As long as the US can get everyone to recognize Bitcoin, it can entirely use Bitcoin to create a brand new dollar trading system. Previously, the dollar was linked to gold, similar to holding US Treasury bonds, and achieving this goal does not seem particularly difficult, as global recognition of Bitcoin is becoming stronger.
Interestingly, since Bitcoin was first proposed in 2008, it has been labeled a Ponzi scheme and a financial bubble, yet it has survived four cycles without collapsing. To put it simply, the value of an asset is a shared recognition in the market, acknowledged by all participants. Regardless of whether it is Wall Street bigwigs or many countries hoarding it, Bhutan even treats Bitcoin as a new national reserve asset. This continuous strengthening, in turn, will further enhance the value of Bitcoin, creating a huge wealth effect, ultimately attracting more people to participate and firmly believe in Bitcoin's value.
What are your thoughts?