Luke Gromen, an experienced macro investor, believes that if the US were to adopt either Bitcoin or gold as a reserve asset, their prices would skyrocket. Gromen explains in a recent YouTube video that the US is facing a “resource curse,” where it relies heavily on producing the dollar as its native commodity, which is cheaper than any other nation’s currency.

According to Gromen, this dominance in dollar production has led to the financialization of the US economy, causing a decline in other sectors and resulting in high levels of wealth inequality and political instability. He argues that this poses a national security risk.

However, Gromen suggests that the US can overcome this “resource curse” by replacing Treasuries as the primary reserve asset with either gold or Bitcoin. By settling deficits in a neutral reserve asset that is universally accepted, the US can address the demand for settling its trade deficit and current account deficit. This would require a significant increase in the price of gold or Bitcoin as a neutral reserve asset in terms of the US dollar.

Gromen’s proposal offers a potential solution to the US’s economic challenges, emphasizing the need to diversify its reserve assets. However, it is important for investors to conduct their own research and exercise caution when considering high-risk investments in Bitcoin, cryptocurrencies, or digital assets. The Daily Hodl, where Gromen’s opinions are expressed, does not provide investment advice and is not affiliated with any investment advisor.