Bitcoin (BTC), once dismissed by many as a speculative asset, is now being considered by some financial experts as a potential solution to the United States’ national security and economic challenges. In a recent interview with Bitcoin advocate Robert Breedlove, macro investor Luke Gromen proposed that the US may soon have little choice but to elevate Bitcoin as a neutral reserve asset. This shift, Gromen believes, could play a crucial role in the country’s financial and geopolitical future.

Gromen’s perspective comes in the wake of significant global developments, particularly the geopolitical tensions between Russia, the US, and NATO. He asserts that the recent defeat of US and NATO forces in Ukraine has changed the global power dynamic, making the US reconsider its reliance on the fiat currency system, especially the US dollar. According to Gromen, this defeat marks the beginning of a “game-changing” shift that could prompt the US to move away from traditional currency systems and adopt Bitcoin as a foundational part of its national defense strategy.

A New Approach to National Security

Gromen argues that the US is now facing a national security crisis, one that has been exacerbated by the economic and geopolitical challenges of the past decade. He suggests that the fiat currency system has played a significant role in weakening the country’s manufacturing capabilities, particularly in sectors crucial to national defense. The dollar’s role in the global financial system has allowed the US to borrow extensively, but this has come at the cost of deindustrialization and a growing dependence on foreign manufacturing.

In this context, Gromen believes that the US national defense and intelligence establishment now sees Bitcoin as a potential solution to revive the country’s industrial base. He claims that by adopting Bitcoin as a reserve asset, the US could stabilize its finances without resorting to the debasement of the dollar, which could ultimately harm the American public.

“The game theory has changed around this,” Gromen states. “For national political stability, for bringing back the middle and working class for defense base re-establishment, all of these things are pointing to a neutral reserve asset.”

Bitcoin: From a Joke to a Strategic Asset

What was once considered a fringe idea—Bitcoin as a neutral reserve asset—has gained increasing traction among political figures and financial experts. Gromen notes that, just a year ago, discussions around Bitcoin’s role in global finance were often met with skepticism or outright dismissal. However, statements from politicians, including former Speaker of the House Paul Ryan, and even remarks from former President Donald Trump about Bitcoin’s potential to rival oil in terms of global strategic value, suggest a growing recognition of Bitcoin’s importance.

Gromen points to the Treasury Department’s recent discussions about using stablecoins to back T-bills as an example of how Bitcoin could be integrated into the broader financial system. He sees this as a signal that the US government is preparing for a major increase in Bitcoin’s market capitalization, similar to the way oil’s price surge in the 1970s allowed it to back the US dollar and the country’s growing deficits.

“What that oil price did by moving up that way was it effectively made oil big enough to back the dollar, to back the US deficits,” Gromen explains. He suggests that Bitcoin could play a similar role in supporting the US economy and the dollar, allowing the country to re-establish its industrial base without undermining the value of its currency or impoverishing its citizens.

Bitcoin’s Role in Financing National Defense and Economic Growth

For Gromen, Bitcoin’s potential as a neutral reserve asset goes beyond its ability to support the US dollar. He believes that Bitcoin’s role in the financial system could provide the US with a mechanism to finance the revitalization of its industries, particularly those related to national defense. As the US looks to shore up its manufacturing capabilities, Gromen argues that Bitcoin’s rise could offer the country a more stable and inflation-resistant alternative to the traditional fiat system.

“The Treasury Borrowing Advisory Committee report has a chart: here’s the market cap of crypto, here’s the market cap of stablecoins, here’s how many T-bills stablecoins have bought, and it’s linear,” Gromen explains. He suggests that Bitcoin could serve as a hedge against inflation while simultaneously providing the necessary financial backing to restore the US’s industrial and defense capabilities.

While the shift to Bitcoin as a reserve asset may be a long-term process, Gromen is optimistic about the role that Bitcoin can play in addressing both the US’s financial and geopolitical challenges. He acknowledges that the transition will likely be inflationary, but believes that the rise of Bitcoin will ultimately benefit Americans by ensuring that they are compensated fairly during this period of economic restructuring.

A New Era for Bitcoin and the US Dollar

The idea of Bitcoin becoming a neutral reserve asset may still seem radical to some, but Gromen’s analysis highlights the growing convergence of geopolitical, economic, and technological forces that could make this shift a reality. As the US faces increasing pressure on its financial system and national security, Bitcoin may emerge as a key tool for restoring stability and ensuring that the country can continue to defend its interests on the global stage.

For now, Bitcoin’s future as a reserve asset remains uncertain, but the growing recognition of its potential suggests that it may soon play a far more prominent role in the world’s financial systems. As Gromen aptly puts it, “Bitcoin isn’t a threat that is rising. It needs to go up faster so that we have more balance sheet capacity and so that our people, as we reinflate to re-shore all of this stuff, stay whole on a real basis while that happens.