Discussions on how cryptocurrencies affect the global economic market have been ongoing, but only now has the debate on how cryptocurrency can boost the market picked up speed. With the ability to digitally affect social and economic standings, the United States of America will benefit from this “Economic Boost.”
Many lawmakers and members of Congress view cryptocurrency as a threat to the country’s current fiat currency standard.
What Macroeconomist Luke Gromen Has To Say
Luke Gromen is a well-respected figure in the financial research sector, with his ability to comprehensively analyze global and topical macroeconomic trends.
According to Gromen, the United States’ economic rivals China and Russia choosing to stockpile gold instead of investing in cryptocurrency can be a significant advantage to the U.S. Gromen made this statement on the podcast hosted by Natalie Brunell on the 14th of September 2022.
The economist claimed, “We would have an economic boom.” The United States needs to view cryptocurrency as a benefit rather than a threat.
The Benefits of Cryptocurrency
With the infrastructure to handle cryptocurrency already in place, the benefits of the United States investing in the crypto market are high. The transaction fees are low using cryptocurrencies, and the transaction times are nearly instant; therefore, if the state needs funds or needs to pay something, it can do so quickly and efficiently.
When the United States is dealing with a poorer or a developing country, if both parties use cryptocurrencies can be used as a safe and trustworthy way for transactions.
Cryptocurrency a Threat to U.S Dollar
With Biden’s administration recently becoming more active in controlling the movement of cryptocurrency, congressman Brad Sherman is worried the U.S dollar will no longer be the benchmark currency.
Mr. Gromen has also expressed his views that bitcoin can threaten the U.S Dollar; however, he states that it will likely not happen, and the United States should invest in cryptocurrency.
As society moves toward a digital-inclusive lifestyle, it may be beneficial for the United States to risk investing in cryptocurrency.
Purchasing Power of The U.S Dollar
According to in2013dollars.com, the U.S dollar had the highest purchasing power since back in 1913 and has slowly been weakening as the years have been going on. The U.S dollar has had an average of 3.17% inflation from 1913 to 2022, meaning that if there weren’t any inflation, $1 would equal $29. With 2021s inflation hitting 4.7%, and so far 2022 inflation being around 8.26%. The inflation of the U.S dollar will bring the “real price” of the U.S dollar, which will lower the purchasing power of the U.S dollar.
Can Cryptocurrency Help The U.S Citizens
Cryptocurrency exchange can be transparent with transactions as it is all digitized and tracked with a distributive ledger. This will allow citizens to see how much state funds are spent and what their tax money is allocated for. This transparency can help fight against corruption and fraud, which is present in politics today.
Another way cryptocurrency can help citizens is that it can help with payments for entrepreneurs. Quick and easy payment will help these small businesses grow, increasing profits. With higher yields, wealth can spread in communities as more people can get jobs and pay for goods, leading to more money for The United states from taxes.
With today’s society moving more into a digital age, any government with a headstart in investing in cryptocurrencies can have a significant economic boom.