He asserts that it lowers global dollar dominance. If we’re honest, there’s a kernel of truth to that claim. The reality is a lot more complicated, especially when you don’t ignore the neglected voices on the other side of the planet.

Dollar's Dilemma, Everyone's Problem?

Specifically, Trump’s nod toward Bitcoin should be viewed as a perhaps-unintentional acknowledgement of the Triffin Dilemma. This is because as the world’s reserve currency, the US has to run trade deficits to provide the rest of the world with dollars. Currently we print money based on demand, but ironically, that process itself is the process that dilutes the dollar over time. The M2 money supply just continues to increase, while your dollar is worth a fraction of what it was a year ago. It's a short-term fix with long-term pain, and Lyn Alden's "nothing stops this train" perfectly captures the feeling of impending devaluation. The DXY, the standard measure of dollar strength, is at a three-year low. Investors can’t deny their nerves, though—evidenced by surging bond yields. He even once proposed paying off the national debt in Bitcoin. With $37 trillion already owed—and that figure jumping by the second—it’s pennies on the dollar at best.

Here's where the unexpected connection comes in: this isn't just an American problem. The implications reach far beyond, particularly to the developing world. That’s where Bitcoin’s promise of economic freedom begins to seem a little…moody.

Bitcoin: Savior or New Oppressor?

Bitcoin does provide the opportunity to escape a dysfunctional, corrupt, global financial apparatus. It's decentralized, censorship-resistant, and could empower individuals. Let's be realistic. Continuing to promote Bitcoin as the answer is tantamount to telling a starving populace “Let them eat cake!

Imagine a remote community in Africa or Southeast Asia. Here, where financial literacy is extremely low and internet access nonexistent at worst or unreliable at best. Now, ask them to invest their entire life savings in a highly volatile asset they have next to no understanding of. What could possibly go wrong?

  • Scams abound. Untrained people are easy marks for fraudsters.
  • Volatility crushes dreams. Bitcoin's price swings can wipe out savings overnight.
  • Lack of consumer protection. No FDIC insurance here. You lose your keys, you lose everything.

It’s certainly very easy for us, living comfortably in our developed-world bubbles, to preach the virtues of Bitcoin. We don’t think enough about the people who are most vulnerable to its downsides. We risk creating a new form of economic colonialism, where wealthy nations and individuals profit from the financial naiveté of others.

Scalability, Regulation, And Responsibility

Can Bitcoin really replace the dollar? Even if you wish to disregard the environmental argument (though, trust us, you do not want to), the scalability challenges are enormous. Finally, as the transaction costs increase dramatically, it becomes incredibly unfeasible to actually use on a daily basis. And let's not forget the regulatory minefield. How do we make sure that Bitcoin doesn’t turn into the world’s preferred method for money launderers and terrorist financiers? The US cannot succeed without strong international cooperation, but is that a reasonable expectation in an increasingly fractured global environment.

Instead of blindly embracing Bitcoin, we should focus on real solutions:

  • Financial education: Empowering people with the knowledge to make informed decisions.
  • Strengthening traditional banking: Making financial services accessible to everyone, not just the wealthy.
  • Responsible regulation: Protecting consumers without stifling innovation.

Yet for many Bitcoiners, Trump’s embrace of their pet project would be a triumphant stroke of genius, a hefty kick to the political establishment’s groin. We need to be careful. We shouldn’t allow the siren song of “economic freedom” to prevent us from seeing the risk for serious collateral damage. We don’t want, we can’t afford, to turn Bitcoin into our Trojan Horse. Rather than liberating the hordes, it ought to liberate them and make them less susceptible. At the end of the day, our accountability is to the community. Let’s make sure we’re not just helping ourselves, but actually doing good for the world.

The question then becomes: is Trump truly thinking about the small guy, or is this driven by something else entirely? Then again, perhaps there is a secretive ulterior motive at play that we are all too dim to understand.