🚨 “SELL THE PAST, BUY THE FUTURE”
— Alex Thorn (@intangiblecoins) December 9, 2024
More from @saylor on his #bitcoin strategic reserve policy recommendation to demonetize gold and solidify USD as the global reserve
“it’s evil genius strategy”
(full @galaxy__brains episode coming this week)
“Gold is a shiny dead rock. Sell… pic.twitter.com/vzk2gP0O4k
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Bitcoin - The United States Has Chosen Its Side
7h05 ▪
6
min read ▪ by
Getting informed
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Investissement
There are fewer and fewer people to criticize bitcoin as it breaks through the 100,000 dollar mark, thanks to a convinced American government.
The Bitcoin Strategy
The chances of the United States creating a strategic reserve of bitcoins are increasing day by day. As a reminder, Donald Trump committed last July to “keep all the bitcoins that the United States possess or acquire.”
It is in this context that Senator Cynthia Lummis proposed to buy one million bitcoins by selling the country’s gold reserves. This strategy is endorsed by Michael Saylor who sees it as an opportunity to make two birds with one stone:
“Dump your gold, sell all the US gold and buy bitcoin, then the trade is free. You will demonetize the entire gold asset class and our enemies hold gold in their banks so their assets would go to zero, our assets would go to a hundred trillion dollars,” he said on Yahoo.
An opinion reiterated at the microphone of Alex Thorn at the end of last week:
Some skepticism remains as the US Congress will need to be involved. However, the American president could act alone by decree. This is what Jack Maller hinted at:
“I know that Donald Trump is considering the possibility of signing a decree on the first day to create this strategic reserve of bitcoins. And this through the ‘Dollar Stabilization Act’ which gives the president a wide margin of maneuver to protect the dollar.”
Moreover, when asked this weekend whether the United States will create a reserve of bitcoins, Trump answered affirmatively. “Yes, I think so, we are going to do great things”.
These statements are not unrelated to the new historic high above 106,000 dollars.
Bretton Woods 2.0
If Donald Trump really wants to end the war in Ukraine, it will involve a new Bretton Woods. The BRICS no longer want the dollar, and bitcoin provides a solution to this revolt that is the backdrop to geopolitical tensions.
The next Treasury Secretary Scott Bessent did not say otherwise at a seminar organized by the Manhattan Institute last summer:
“It is not impossible that we are soon heading towards some sort of major global economic rearrangement, something similar to Bretton Woods […]. There is a strong chance that this will happen in the next four years and I would like to be a part of it.”
This discourse aligns with the Republican ambition to reindustrialize the economy to reduce the abyssal trade deficit. A deficit that Americans can enjoy because they print the international currency.
To resolve it, Donald Trump has promised that companies investing at least one billion dollars in the United States will obtain their extraction permits without delay. Indeed, if China – which controls most of the global mining supply chain – is snubbing the dollar, digging again in America will be necessary.
Such is the strategy to preserve the value of the greenback: reduce deficits by producing again on American soil as well as increasing customs duties. In the face of the emergence of BRICS, Uncle Sam doesn’t really have a choice anyway. Soon enough, trading on equal terms will be necessary.
Then the question arises regarding the next international reserve currency and all eyes turn to gold. China and Russia have been accumulating it for many years.
It is not hard to imagine that Washington may want to try one last poker move by trading its gold for bitcoin, which is undoubtedly a better store of value.
Global FOMO
All nations with significant foreign exchange reserves will tune in. The signals going in this direction are legion. Deputies from all over the world are on the move. This is the case in Brazil, Japan, and also in Russia.
The Russian president even recently declared that “no one can stop bitcoin”. Russia controls about 17% of the network’s computing power. The CEO of the Russian miner Bitriver even plans to surpass the United States (35%) very soon.
Additionally, small countries have already jumped in. This is the case for El Salvador (where bitcoin is legal tender) and Bhutan. Not to mention the countries that act discreetly, particularly the United Arab Emirates, according to former Binance CEO CZ.
Asia is not left out. The former Thai Prime Minister Thaksin Shinawatra expressed confidence that bitcoin could reach 850,000 dollars. The current government (led by his son) might well imitate El Salvador.
Even Germany is starting to regret having sold its 50,000 BTC at an average price of 54,000 dollars. Former German Finance Minister Christian Lindner criticized Chancellor Olaf Scholz this Monday for this strategic error:
Finally, the outrageous success of Microstrategy (which just entered NASDAQ) has not gone unnoticed by multinationals. Microsoft may have said no, but changes in US accounting rules are promising. Since December 15, American firms holding bitcoins will no longer be penalized by an outdated accounting framework.
The road is clear. As the former campaign director of Donald Trump said: “To those celebrating 100,000 $, you will celebrate much higher.”
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Bitcoin, geopolitical, economic and energy journalist.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.