Macro Investor Luke Gromen Foresees Prosperity for Bitcoin and Gold Amidst US Fiscal Challenges

Experienced macro investor Luke Gromen predicts that Bitcoin (BTC) and gold have the potential to thrive amidst escalating fiscal challenges in the US economy.

In a recent interview on the Blockworks Macro YouTube channel, macro investor Luke Gromen suggests that relentless quantitative easing and a potential shift in strategy by the Federal Reserve could create a favorable environment for assets like gold, oil, and Bitcoin (BTC) to thrive.

Gromen notes that if the Federal Reserve opts for rate cuts, short-term treasuries may perform well, but they are unlikely to outperform gold, Bitcoin, and oil. He emphasizes that even in scenarios where the Fed refrains from cutting rates and engages in alternative forms of monetary policy, such as treasury buybacks or other measures labeled as 'not QE,' it could still be beneficial for oil, gold, and Bitcoin.

Gold and BTC, according to Gromen, thrive as duration assets with a fixed supply and the potential for increased face value, particularly during times when a nation faces fiscal challenges. In the context of global fiscal problems, Gromen believes that both gold and Bitcoin will perform well, especially considering the fiscal issues of the US, the world's reserve currency, compared to other economies.

Gromen also discusses the potential launch of a gold-backed currency by the BRICS nations (Brazil, Russia, India, China, and South Africa), suggesting that such a move could weaken the US dollar as the world's reserve currency. He predicts a shift toward a system similar to what John Maynard Keynes proposed after World War II, where a neutral reserve asset would be made up of commodities, including gold, rather than relying solely on the dollar.

As of the current writing, Bitcoin is trading at $27,132.

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Oct 03, 2023