Lauren Messner
@laurenmessner
Foreign demand. POTUS is establishing early in this term that the U.S. is still the dominant power. No other country is even close to replacing the USD as the world’s reserve currency. With the U.S. flexing, demand for dollars (and U.S. assets) will only strengthen. Hopefully enough to avoid a debt spiral 😅
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Samuel ツ
@samuellhuber.eth
"Hopefully enough to avoid a debt spiral 😅" can't that only be done by servicing debt. Assume Europe has a economic down and won't be too tight into USD outside of capital flight into USD until the EU regulates that away
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Lauren Messner
@laurenmessner
Servicing debt is the key, but foreign demand helps by keeping borrowing costs in check. If Europe slows down, capital flight into USD still props up demand—regulation or not, money moves where it’s safest. Surprisingly that’s still USD (until countries get behind BTC 😉)
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Samuel ツ
@samuellhuber.eth
one thing I haven't yet fully understood about BTC is how the network will keep the security budget once inflation is 0 or below operational cost. At that time I assume BTC price is high so TX cost is too high for low value TX's. How will it sustain a high enough hash rate so it's not attacked?
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