I have been chewing over the idea of the Triffin dilemma for a few weeks.
This is the theory from economist Robert Triffin in the 1960s that any national currency struggles long term as a global currency. The end game is when so much of the currency is held abroad that the issuing country can no longer back the value.
We can see this now with the $usd. It has lost value because it can't remain as high without affecting the US economy. 💵
The US needs to constantly run deficits and huge debts. It is no longer sustainable.
Some economists suggest that 2026 is late stage Triffin
Something has to change.
Where does $btc come In?
Bancor was suggested in the 1940s as a borderless global currency to avoid this sort of situation. There would be no need for a central bank to issue or settle it.
We would no longer need to use a national currency for international trade.
Sounds a lot like Bitcoin, right? One theory is that btc could act as a type of triffin exit strategy. Money would go here instead of the Dollar.
This would make the market cap explode and make it much more stable, as usd flows into bitcoin as a permanent solution.
Us treasury secretary Scott Bessent believes that the Triffin Dilemma requieres that the Bretton Woods system is restrucutred vía tarriffs and Dollar correction.
He also supoorts a strategic bitcoin reserve to act as a buffer.
I believe it's not a coincidence that the Trump administration has talked about crypto from day one. For me, it is a possible Triffin exit they are seriously considering. They are playing the long game. 🤔
So you think this sounds possible? Or is there a different type of Triffin exit possible?
