The Three Reasons The U.S. Crypto Strategic Reserve Is DOA
President Trump posted on Truth Social on Sunday:
The post sent crypto market cap up 8% in the following 24 hours, and the market cap of the five tokens mentioned went up 21.5% on average.
So why do I think the strategic reserve is DOA? Here are my three reasons:
1. The Government Is Not Our Friend
I’ve been crypto 24/7 for 7+ years because of my two core beliefs about the U.S. and all other governments
- The government is not our friend
- Tomorrow it’s going to get worse
I hope Trump solves our problems. Just like I hoped Biden would solve our problems before him. Just like I hoped about Trump before him.But the hopes have NEVER been realized :-(.
2. Bitcoin Is A Threat To The Position Of The U.S. Dollar As A Currency Reserve
I get lots of people believe don’t think Bitcoin is a threat to the dollar’s position as the worlds global reserve. But the truth is, few would bet their life on that fact. So the truth is, we really do not know. So, it’s a gamble. with DEVASTATING downside if proven to lead to the decline of the dollars status. This isn’t my opinion. I asked Venice.ai “Is Bitcoin a threat to the U.S. dollar”? It gave a thoughtful response that conlcuded with
Overall, the question of whether Bitcoin is a threat to the U.S. dollar remains a topic of debate among experts, with different opinions and perspectives on the matter.
3. It Doesn’t Really Move The Needle On The Debt Problem
While it’s still not clear how such a reserve would work or when it would be introduced, a Republican-authored bill in the Senate would direct the government to buy one million Bitcoins — worth around $100B today. So if Bitcoin 10X’s the $100B, putting Bitcoin in the $20T market cap range of gold, that would create a cool $1T in profits. But given the $36.5T debt today, does that really move the needle on the debt?
A 4th reason would be that the crypto industry is so divided over this issue given the shitcoins potentially being included (e.g. XRP and ADA). And I could go on. But I’ll end with mentioning that the last time I said something was DOA, I was referring to Libra on CNBC the day it was announced:
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This content is for educational purposes only. It does not constitute trading advice. The author of this article may hold assets mentioned in the piece
