The founder predicts that the U.S.-Bitcoin-China war could determine who will rule the world
GARG has made a sharp, forward-looking post on LinkedIn that the next eight to ten years will be affected by a brutal global competition between the United States and China. “The next 8-10 years will be like a war; China and we will fight for who is the ruler of the planet,” he wrote. His arguments bring together monetary policy, sovereign debt risks, and quiet but steady growth.
Gold and Stablecoins: New Frontline
GARG pointed out that the recent sharp rise in gold prices is a signal that uncertainty is increasing. He described “vertical expansion.” However, he believes that gold is just the first asset to turbulence. He suggested that the real flash point lies in the sovereign bond market.
“Who will buy us the Treasury Department?” Garg asked, referring to the debt of U.S. debt and the reduction in foreign government’s interests in U.S. long-term bonds. His answer? Stable.
“The United States has an elegant, acceptable solution in the form of a stabilizer. Stabilizing is the largest UST buyer at present, and as the stable stocks grow exponentially, they will replace sovereigns as marginal buyers of UST,” he said.
He believes that this is the real reason why the United States began to embrace cryptocurrencies. “The adoption of crypto promotes stable stability. That’s why we are promoting cryptocurrencies. Ultimately, more stable minting means more meaning, more buying UST and less bond yields.”
Garg believes this is an imminent crisis in bond yields. He warned that this situation is different from India’s mortgage rate tightening. “Now all this needs to happen quickly. The war has begun,” he wrote.
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Can the United States weaponize its golden weapons?
That argument then pivoted against what the United States might do next. GARG speculates that the U.S. government can revalue its gold reserves, which basically adds trillions of dollars in accounting headwinds – and uses it to expand its balance sheet and even buy Bitcoin.
He even raised the possibility of a new type of gold-Bitty balance bill, where the United States can strategically sell or hold bitcoin to maintain its global financial advantage with China.
“We still have 4 times the level of gold, and the next war may be on gold and Bitcoin,” Garg pointed out. He drew a line in history to strengthen his case. “It’s not new – the Greek War and the Roman War were conducted with silver and gold, and there was no guesswork on the price of gold winning. China was washed out last century because of its obsession with silver.”
He ended with a provocative question: “Can Bitcoin win this war, can we maintain the balance sheet advantage?”
Please read also: Will gold touch Rs 1.2 lakh very quickly? Here’s why JP Morgan and Goldman Sachs predict gold metal prices
Trump suggests tariffs rise in tensions
Although Garg sees the financial battlefield, former U.S. President Donald Trump has taken a better route in terms of tariffs.
Speaking at the Oval Office on Tuesday, Trump said the historic 145% tariffs on Chinese imports could be temporary. “145% of people are tall and not that high,” he said. “No, it won’t get close to that high. It will drop significantly. But it won’t be zero – it used to be zero. We were just destroyed. China took us for a ride.”
“We will be very kind, they will be very kind, we will see what will happen. But in the end, they have to make a deal because otherwise they will not be able to trade in the United States.”
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Behind the door, the warning is not sustainable
According to reports, U.S. Treasury Secretary Scott Bessent told investors that the current U.S.-China trade deadlock will not last long, and a change in tone occurred. “No one thinks the status quo is sustainable,” Best said at the private JP Morgan Chase forum in Washington.
Currently, the tariffs on imports from China to the United States are as high as 145%. China has responded to tariffs on U.S. goods at a rate of 125%. Some sectors (such as electronics) are tax-free, but blankets face a 20% tax due to fentanyl-related concerns.
Despite the escalation, no formal talks have been held. However, according to White House press secretary Karoline Leavitt, the United States is laying the foundation for future negotiations. “We are building a stage for China,” she said, adding that the government has “do a good job” in trade and more than 100 countries have shown interest in the new bilateral arrangements.
The market responds with caution
Investors are paying close attention. U.S. stocks jumped more than 2% after Bessent’s speech, reflecting that a deal (regardless of the distance) could eventually appear.
But while the market cheers analysts, analysts remain vigilant. As geopolitical competition intensifies and enters competitive digital assets, the U.S.-China competition is becoming something more complex than tariffs or trade. This is a currency war, a technological war, and a major war.
