National Security Crisis Could Push Bitcoin Into Reserve Asset Status, Says Gromen

In order to handle new national security and economic issues, macro expert Luke Gromen proposes that the US adopt Bitcoin (BTC) as a neutral reserve asset. Gromen emphasized in an interview with Robert Breedlove how the United States may be forced to reevaluate its position on Bitcoin and the fiat currency system due to changing geopolitical forces.

Geopolitical Shifts and Economic Realities

According to Gromen, the conflict in Ukraine has exposed vulnerabilities in the U.S. and NATO’s defense strategies. He argues that the current fiat-based system has weakened the nation’s industrial base by driving manufacturing overseas, undermining the ability to produce critical defense materials.

To counter these challenges, Gromen believes the U.S. must adopt bold measures. He suggests that the Treasury Department and defense establishment may look to debase the dollar while using Bitcoin to support the Treasury market. He explains, “The game theory has changed around this: for national political stability, for bringing back the middle and working class, for defense base re-establishment.”

Gromen notes that Bitcoin, once dismissed as an unrealistic asset, is gaining serious consideration among policymakers. He referenced discussions on stablecoins and their potential role in bolstering demand for U.S. Treasury bills, alongside former House Speaker Paul Ryan’s advocacy for using stablecoins in financial frameworks.

Gromen compares the potential elevation of Bitcoin to the dramatic rise of oil prices in 1973, which helped solidify oil’s role in supporting the dollar. He argues that a similar surge in Bitcoin’s market cap could make it a viable reserve asset, allowing the U.S. to address industrial re-shoring and national defense needs without impoverishing its citizens.

“When you think about it in the context of political stability and national defense issues, the game theory is turned on its head,” Gromen said. He added that Bitcoin’s growing market cap could provide balance sheet capacity, enabling the U.S. to mitigate inflationary pressures while ensuring economic stability for its people.

At the time of writing, Bitcoin is trading at $104,595, underscoring its increasing relevance in global financial markets.