U.S. Dollar vs. Bitcoin: Fiscal Deficit and Geopolitical Implications

Bitcoin challenges the dollar's dominance by emerging as a viable collateral in ultra-short-term finance.

Bitcoin challenges the dollar's dominance by emerging as collateral in ultra-short-term finance.

### The U.S. Fiscal Deficit and Bitcoin's Emergence
The U.S. fiscal deficit is linked to its debt and is challenging to manage, with a **shortage of dollars and rising inflation**. Bitcoin is seen as a competitor to the dollar, and its emergence is closely tied to the U.S.'s **global power**. The author argues that the U.S. may not be able to **stop Bitcoin's rise**, leading to a potential **embrace of both Bitcoin and the dollar** in the future.

### The U.S. Strategy for Acquiring Bitcoin
The U.S. government aims to hold a **significant amount of Bitcoin**, with a focus on acquiring it **before other countries**. The government's role in the economy is often misunderstood, as its method of **earning money differs** from that of businesses or individuals. By creating a favorable system for Bitcoin businesses, such as through **ETFs and asset accounting**, the U.S. can indirectly **control Bitcoin ownership** through financial institutions, making it a **more cost-effective strategy**.

### The Future of Bitcoin and the Dollar
The U.S. may eventually link Bitcoin and the dollar, with Bitcoin's value potentially **skyrocketing**. The U.S. has approved Bitcoin ETFs, while Korea hesitates, showing a **lack of understanding of the overall context**. The dollar is in demand as a **safe asset during global conflicts**, but the U.S. fiscal deficit raises **concerns for the long term**.

### The Decline of American Power in the Indian Ocean
The decline of American power in the Indian Ocean is linked to the **U.S. withdrawal from the region**, which began during Obama's second term. The U.S. relies on naval capabilities for power projection, but **limited resources and rising inflation** are challenging its defense efforts. In contrast, China's military system allows for **lower labor costs and less need for significant salary increases**, giving them an advantage in **attracting top talent**.

### The U.S. and Global Hegemony: A Complex Balance
The U.S. faces limited options in managing its budget deficit and global police role, with a potential **withdrawal from this position**. The strategic importance of the West Pacific and the Indian Ocean is crucial, with China's presence potentially leading to a **struggle for dominance**. Bitcoin's impact on global finance is expected to be through **ultra-short-term financing**, challenging the dollar's status, while the engine of global finance operates on this **short-term cycle**.

### The Complexities of Interest Rates and Global Finance
The Federal Reserve's actions influence banks, but the interest rates they offer are not directly used for **scholarships or housing**. Eurodollars play a **crucial role in global finance**, and the 2008 crisis revealed the **transmission of defaults without collateral**. Gold and Bitcoin are both seen as important assets, with Bitcoin challenging the status of **reserve currencies** and offering a unique solution to **counterparty risk**.

### The U.S. Fiscal Deficit and Bitcoin's Emergence
The U.S. fiscal deficit is closely tied to its debt and is challenging to manage, exacerbated by **rising defense spending and inflation**. Bitcoin is seen as a competitor to the dollar, with its emergence potentially **challenging the U.S. global order**. The author believes the U.S. cannot stop Bitcoin's rise and will ultimately **embrace it**, suggesting a potential **coexistence of Bitcoin and the dollar**.

### The U.S. Strategy for Acquiring Bitcoin
The U.S. government's approach to owning Bitcoin is different from that of American companies and individuals. By holding Bitcoin through financial institutions, the government can **exert indirect control**, making direct ownership **less essential**. Creating a favorable system for Bitcoin businesses in the U.S., starting with an **ETF** and allowing companies to **account for Bitcoin as an asset**, is key to the country's strategy.

### The Future of Bitcoin and the Dollar
The U.S. may eventually link Bitcoin and the dollar, with Bitcoin's value potentially **skyrocketing**. The U.S. has approved Bitcoin ETFs, while Korea hesitates, indicating a **lack of understanding of the overall context**. The dollar currently has **strong short-term demand** due to global instability, but the U.S. fiscal deficit raises **concerns for the long term**.

### The Decline of American Power in the Indian Ocean
The decline of American power in the Indian Ocean is linked to the **U.S. withdrawal from the region**, which began during Obama's second term. The U.S. projects power primarily through its **naval capabilities**, but a lack of resources and the rising cost of personnel are major challenges. While the U.S. has historically held a **dominant naval presence**, its global influence has significantly diminished, now accounting for **around 25% of GDP**, while China is increasing its defense spending and power.

### The U.S. Struggle for Global Dominance
The U.S. faces a dilemma of **increasing its budget deficit** to maintain its role as the world's police or **withdrawing from that role**. The strategic importance of the **West Pacific** and **India's dominance** is crucial, with China's presence posing a challenge. Bitcoin's potential as a **reserve currency** is questioned, with its initial impact likely to be felt in **ultra-short-term finance**, challenging the dollar's status.

### The Complexities of Interest Rates and Global Finance
The Federal Reserve's actions influence global finance, but the interest rates from first-tier banks do not directly impact **personal loans or car purchases**. Eurodollars play a crucial role in providing **affordable prices**, while the 2008 financial crisis revealed the **transmission of defaults and the lack of collateral** in global finance. Gold and Bitcoin are both seen as valuable assets, but Bitcoin's ability to **transfer quickly and challenge the status of reserve currencies** is becoming increasingly significant.

### The Future of Bitcoin: Challenges and Opportunities for the U.S. Dollar
* 💰 The U.S. fiscal deficit is intricately linked to its national debt, raising concerns about the country's **ability to manage this deficit effectively in the long term**.
* 📉 Increasing defense spending in the U.S. is outpaced by rising inflation, leading to a **decline in the dollar's value** and potentially paving the way for **Bitcoin to challenge its status**.
* 🌍 The relationship between Bitcoin and geopolitics is significant, as Bitcoin is seen as **competing with the dollar**, which represents **U.S. power in the global order**.
* 🔍 The author reflects on the idea that while Bitcoin may seem like a threat to the dollar, the reality is that the U.S. may ultimately **embrace Bitcoin rather than attempt to suppress it**.
* 🏦 To prepare for a future where Bitcoin could coexist with the dollar, the U.S. government could facilitate this by allowing **American companies and individuals to hold Bitcoin through financial institutions**.
* 💡 The U.S. needs to establish a favorable system for Bitcoin businesses, potentially starting with **Bitcoin ETFs** and recognizing Bitcoin as an **asset for companies**.
* 📈 In a world where Bitcoin is accepted, it could serve as **collateral in ultra-short-term finance**, challenging the dollar's **reserve currency status** while also presenting **new opportunities for investment**.
* ⚖ Ultimately, the U.S. must navigate its fiscal challenges while considering the **strategic implications of Bitcoin's rise** and its potential to **reshape the financial landscape**.

### The Interplay of Bitcoin, U.S. Debt, and Geopolitical Dynamics
* 💰 The U.S. fiscal deficit is intrinsically linked to its national debt, raising concerns about the country's **ability to manage this deficit in the long term** amid increasing inflation and defense spending.
* 📉 With the U.S. dollar facing challenges from Bitcoin, the author emphasizes that "**Bitcoin will emerge in a way that challenges the status of the dollar**," suggesting a **shift in global financial power dynamics**.
* 🌍 The relationship between Bitcoin and geopolitics is highlighted, as changes in U.S. policy towards Bitcoin could signal a **transformation in global order**, given that the U.S. is **central to the current system**.
* 🔍 Despite initial skepticism about Bitcoin's potential to replace the dollar, the author concludes that the U.S. cannot stop its rise and may ultimately embrace it, stating, "**If the U.S. can't stop it, then what should we do? The U.S., as I understand it, will embrace it.**"
* 🏦 The author argues for the importance of establishing a favorable system for Bitcoin in the U.S., suggesting that if American banks hold Bitcoin, it would allow for **indirect control by the government** while **minimizing costs**.
* 📊 The current situation of the dollar is **stable in the short term**, but concerns about the U.S. fiscal deficit raise questions about **long-term sustainability**, particularly in the context of a **declining population** and its economic implications.
* ⚔ The discussion touches on the historical context of the dollar's dominance, drawing parallels to past global conflicts and emphasizing that **Bitcoin's rise could also be influenced by geopolitical tensions**.
* 💡 Ultimately, Bitcoin is positioned as a **potential collateral asset** in ultra-short-term finance, challenging the dollar's status and suggesting a future where both currencies could **coexist in the financial ecosystem**.

미국 달러패권의 종말, 비트코인은 앞으로 '이렇게' 된다 (오태민 작가 / 3부)

* 출연신청 & 제휴 및 광고문의 : ssid@dpnstud.io
