A New Reserve Era is Here? Bitcoin: From Gold to Treasuries
Since the beginning of American history, the United States relied heavily on its dollar and U.S. Treasuries to support their economic, fiscal and monetary strategies. What happens when the luster of these instruments fades?
The Bitcoin Policy Institute‘s Director of Policy Zack Shapiro. the financial system currently in place is approaching a pivotal point. The current financial system is entering a historic inflection point. recent interview Then, you can get the Bitcoin Policy HourHe noted “If the United States announces that we are buying a million Bitcoin, that’s just a global seismic shock,” “I will continue to say” “We probably go very quickly to something like a million dollars per Bitcoin.”
The changing of the monetary system, which could see Treasuries become the primary reserve currency and Bitcoin as the secondary, is obvious to anyone with an open mind. However, it is not easy to follow the path that is available.
Recent discussions around revaluing U.S. gold holdings — still officially priced at $42.22 per ounce — could unleash nearly New purchasing power of $1 Trillion Should the U.S. choose to use it. What would the U.S. decide to do with this windfall? BPI policy-makers are correct, the money could be used to create a Bitcoin strategic reserve that is budget neutral and in line with the Strategic Bitcoin Reserve Executive Order.
Gold is ancient. Bitcoin Is Strategic.
Matthew PinesBPI’s Executive Director frames this choice using stark geo-economic terms. “In terms of strategic leverage, there’s an asymmetric advantage for the United States to having Bitcoin monetize relative to gold,” he said. Pines noted that both the U.S.A. and its people own Bitcoin: 35% in circulation — a ratio that gives Washington serious incentive to prefer digital over metallic money.
Gold has no historical value. “centralizable, expensive to transport, and incompatible with a 21st-century economy,” Pines. Although central banks will continue to stack it up as a hedge for the weaponization and use of Treasury bonds, its usefulness as a reserve asset is still limited.
Bitcoin, by contrast, is fast, global, and increasingly liquid — a networked form of monetary energy that sidesteps the geopolitical chokepoints that define traditional finance.
It’s Already Post-Dollar World
The dollar remains dominant — but fragile. Shapiro cited Triffin’s DilemmaThe article notes that the U.S. is increasingly forced to choose between its domestic goals and international requirements for reserve currency issues. The sanctions imposed in 2022 on Russia’s dollars reserves shook the global trust in U.S. assets. Since then, foreign central banks have responded by moving rapidly into gold — and in some cases, Bitcoin.
“The Treasury is becoming less of a neutral reserve asset,” Shapiro made the comment, in reference to the perceived politicization by the U.S. of financial power and the growing disorder on bond markets.
Yet both he and Pines stress that America still has tools — and Bitcoin may be the most potent among them. In a digitalized age, shifting U.S. reserves into Bitcoin could help the U.S. reduce reliance upon debt issuance and secure asymmetrical lever. It would also allow it to compete from a stronger position with rivals like China and Russia.
Strategic Bitcoin Reserve – A National Imperative
Treasury and Commerce departments are exploring Bitcoin under the new executive order that guides Trump’s Bitcoin strategy. “budget-neutral” Paths to Bitcoin purchase There are several ways you can acquire bitcoins.
- Gold Revaluation The statutory rate has been in place since 1973
- Selling surplus federal assets The spectrum is a combination of land, gold and other resources.
- Tariff revenues and royalties
Pines highlights the urgency of institutional implementation: “Words matter — especially when they come from the White House,” He made a note. “An executive order stating Bitcoin is strategic is itself a global signal.”
But he also pointed out that bureaucratic lack of action is a major problem. “There’s a massive difference between the speed at which the White House wants to move and the ability of the federal bureaucracy to follow.”
From theory to detonation: The global fallout of an American Bitcoin pivot
It would have immediate and widespread effects if America bought Bitcoin in large quantities.
“Other nation-states will see that they can’t be left behind,” Shapiro. “It would change central bank reserve strategies around the world.”
A global rebalancing will follow. Reassessment of countries heavily invested in Treasuries or gold. Bitcoin’s legitimacy and value could increase, while hard assets such as gold might see a decline in demand. This would result in massive gains on the balance sheets of the U.S. government.
Bitcoin: Is it the Next Superpower Weapon?
Shapiro agrees with Pines: Bitcoin’s strategic importance is too great to ignore, regardless of your opinion on Triffin’s dilemma or the history of monetary policy.
“Bitcoin is indispensable,” Shapiro. “Wherever we’re going next, it’s going to help us get there.”
If the United States truly wants to be a leader in global affairs, then they must do something. “dump gold” The exact nature of the problem is not yet known. Charlie Munger, the late Charlie Munger said: “Show me the incentives and I’ll show you the outcome.” Due to the U.S. – China competition, and America’s relative dominance of its Bitcoins held domestically, it is possible that a shift in attitude towards gold will be forthcoming.
Investors and government officials have, without doubt, begun to run a similar calculation. Bitcoiners say it is time to adopt the game theory.
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Source: bitcoinmagazine.com
