Let’s get one thing out of the way – The United States already holds more bitcoin than any government in the world.
https://x.com/pete_rizzo_/
While this data is trueYou wouldn’t know it from the amount of FOMO generated on social media by lobbyists for industry.
David Bailey of BTC Inc., the CEO, pushed for President Donald Trump’s Executive Order to put it in place. on day oneDennis Porter of Satoshi Action Fund has been stirring up state-level excitement, promising to have states actively involved in purchasing before the federal government As a form of patriotism, frontrunning.
Here I am, looking into the Strategic Bitcoin Reserve. It is true that the United States must have a long term plan for its dollar. This will most likely involve it giving up the status of a reserve currency.
It is true that the U.S. needs to actively boost the Bitcoin market. This sky is falling approach could not be further from the truth.
No other government is buying Bitcoin nor has any public plans to do so. China appears to be the second largest Bitcoin state, having formally prohibited its use.
Of the countries that are actively buying Bitcoin with intent – Bhutan El Salvador has around 6,000 BTC while the US government owns just under 10,000 BTC. Neither are going to purchase more Bitcoin than the U.S. government already has – nor does either have a widely popular money printer.
Full stop – even if the U.S. government didn’t buy Bitcoin for a decade, its stockpile would be sizable. You may say that the U.S. government wants to send a strong message and show leadership, but this is not necessary.
What is more important, a Strategic Reserve or regulation which will ease our industry’s barriers? Which will enable businesses to grow their sovereign currency use?
Don’t forget about the terrible taxation laws which make Bitcoin holders hesitate to use bitcoins for purchasing.
All this is to say, Strategic Bitcoin Reserve advocates shouldn’t overplay their hand – a lot can be gained just by getting the U.S. government to stop selling the Bitcoin it already has, and there are arguably bigger gains to be had, or at least much worse laws to erase.
What if the U.S. Government started purchasing Bitcoins? Surely. We can use our political capital for Bitcoin adoption and not to just fill up our wallets.
The article below is an overview of the topic. Take. The opinions expressed by the authors are their own and not those of BTC Inc. or Bitcoin Magazine.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: bitcoinmagazine.com
