Top economists: Bitcoin may not kill the dollar, but it will

Renowned economist Daniel Lacalle expressed concern about the future of the dollar, not because of Crypto Assets such as Bitcoin, but because of fiscal policy.
Lacalle noted that the country's debt has grown phenomenally, exceeding $34 trillion, or $1 trillion per hundred days.
He argues that this trend is unsustainable, especially in a period of recovery marked by strong job growth and rise incomes.
An unsustainable path to debt accumulation
The crux of Lacalle's argument is the absolute rate of debt accumulation relative to the country's GDP growth, which is the worst since 1930, adjusted for public debt accumulation.
The economist highlighted the paradox of an ostensibly strong economic performance while the country's debt is ballooning at an unprecedented rate. He questioned his view of the economic recovery, pointing to declining purchasing power of wages and increasing financial pressures on American households, exacerbated by negative real wage growth.
Lacalle's goal was Modern Monetary Theory (MMT), a controversial economic theory that some interpret as giving governments carte blanche to make unlimited spending as long as they control their own currency.
The theory argues that the only real limit to government spending is Inflation.
However, Lacalle argues that despite four years of official inflation of 20%, the continued fiscal expansion in the United States shows a reckless disregard for the long-term health of the economy and the dollar. He warns that the ideological appeal of MMT masks the serious dangers of its practical application, ultimately with fiscally irresponsible consequences for households.
A real threat to the dollar
Despite the fact that the price of the Bitcoin has soared to break through $62,000 amid the continuous rise of national debt and Inflation, Lacalle believes that Crypto Assets is not the main threat to the dollar's status as the world's reserve currency. Conversely, the erosion of confidence in the U.S. government's fiscal and monetary policies poses greater risks.
He warned in advance that when confidence in government fiscal discipline fades, monetary sovereignty could be abruptly lost, leading to a vicious cycle of higher borrowing costs, rising Inflation and, eventually, the possible dethronement of the dollar. #比特币新闻 US Dollar Index
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