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Sebastian Bea, president of Coinbase Asset Management, believes a technical change to the way Washington accounts for its gold could unlock enough budget-neutral capital for a strategic Bitcoin purchase approaching $100 billion—years ahead of market expectations.
It takes 40 minutes to complete a task. appearance Bea presented the concept as “hiding in plain site” on The Scoop, a new program released this Wednesday. “Sometimes the ideas are so big that people either can’t hear them or don’t want to hear them,” He said it at the beginning of the interview. “But they’ve got to listen to this one.”
The 261.5-million-ounce limit is regulated by statute US gold hoard is still recorded at $42.22 per ounce—a valuation fixed in 1973. With Wednesday’s price at roughly $3.303, there is a gap of almost $900 Billion between book value (the value recorded in the records) and market value.
“So today, because of law, the US government still values gold that it holds in Fort Knox at $42 and change,” Bea noted “If they were to just mark that to market, that’s an incremental 900 to … I heard a billion to a trillion dollars.”
Bitcoin As a Mark-to Market Alternative
Bea’s main argument is that Congress can pass a brief bill amending the 31 U.S.C. § 5117, re-strike higher-denomination gold certificates, and credit the revaluation gain to a sovereign-wealth-style account at Treasury in line with US president Donald Trump’s executive order for a strategic Bitcoin reserve—without adding to headline federal debt.
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“When the revaluation occurs, that creates a $900 billion mark-to-market gain, which the Treasury could then take […] in a budget-neutral manner to go and buy a variety of things. We think probably including Bitcoin,” He said.
The mirrors of his arithmetic Senator Cynthia LummisBITCOIN Act – Introduced earlier this year. Directs Treasury to buy one million BTC (about $100 billion at the current price) within five years, remaining in deficit neutral.
Bea argued that a US purchase of that size—about 5.5% of Bitcoin’s $1.8 trillion market capitalization—would almost certainly prompt other states to respond. “It’s hard to see a situation where other governments don’t feel compelled in some way to measure up,” He said that dynamic might be similar to “competitive situation” Central banks purchased a record number of gold tonne last year.
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Demand for gold from central banks can be attributed to “the overall level of debt that they see and the concerns around the global economy,” Bea spoke. “So does it seem so crazy to maybe save in some Bitcoin at, say, a ninety-to-ten ratio, given the whole world is going online?”
How Soon Is ‘Sooner Than Expected’?
Bea did not give Chaparro a timetable for the changes, but she told him that they would happen. “could be this year.” He suggested the trigger could come from legislators seeking an offset for new outlays—or from Treasury itself if political momentum builds behind the Lummis bill.
“As soon as you understand the pipes of how banks and how the government works,” “He concluded,” “you realize they can revalue gold and buy Bitcoin and still be budget neutral. And once that’s on the table, it’s really just a matter of political will.”
BTC is currently trading for $93,422.
Featured image was created using DALL.E chart by TradingView.com
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Source: www.newsbtc.com
