The U.S. Plans to Tackle Debt with Bitcoin!

It is not to please the cypherpunks that the United States is preparing to accumulate millions of bitcoins. The goal is to lighten the burden of debt.

Bitcoin and American debt

The fact that the American superpower embraced bitcoin first is not trivial. Many have dismissed the idea that bitcoin could become an international reserve currency, claiming that the United States would do everything to protect its monetary hegemony.

As a reminder, this dominance dates back to the Bretton Woods agreements (1944). Nations reluctantly agreed to trade in dollars on the condition that they could convert them into gold at a fixed price of $35 per ounce.

The United States broke its promise in 1971 but immediately forced OPEC nations to sell their oil exclusively in dollars. The Old Continent was thus prevented from abandoning the dollar. Since then, all exporting nations have placed their hundreds of billions of dollars in American debt to earn interest.

This is what is known as the petrodollar system, which gives the United States the exorbitant privilege of maintaining a chronically trade-deficit balance without the dollar collapsing.

In short, the United States lives beyond its means by borrowing from exporting nations. However, this privilege is double-edged. Indeed, nearly a third of global public debt is American (36 trillion $)…

This debt has become unpayable, so much so that China has stopped placing its trade surpluses there, just like Russia and many other countries revolving around the Sino-Russian bloc.

And while the empire believed it could cut off the heads of the BRICS through a proxy war in Russia, a Plan B may be necessary to deal with the debt problem.

The BTC Plan

Not repaying the 300 billion euros Europe owes to Russia or the 800 billion the United States owes to China would be very risky.

It is nearly 10 trillion dollars that the American government owes to the rest of the world. Unfortunately, no one wants to participate in the Ponzi scheme anymore. When the BRICS hesitate to trade in dollars, it must be understood that they no longer wish to finance American debt.

And rather than defaulting, risking a third world war, why not bet on bitcoin to wipe the slate clean? This is the idea of Michael Saylor, who proposes buying 5 to 25% of bitcoins between 2025 and 2035. According to him, these bitcoins could generate between 16 and 81 trillion dollars, “which would help offset the national debt”.

Obviously, Mr. Saylor does not imagine for a second that this reserve could include anything other than bitcoins. “There is no second best”, he likes to say. For him, this reserve should only include bitcoins obtained through the sale of the country’s gold stocks. No need for ETH, SOL, or any other digital asset.

The crypto lobbies have managed to make their way into the halls of the White House, but no one is fooled. Ultimately, this strategic reserve will be entirely composed of bitcoins.

In the face of American strategy, some are finally waking up in Europe. Deutsche Bank has just realized that the American strategic reserve of bitcoins “could set an international standard”.

In France, Marine Le Pen wants to exploit the surplus production from nuclear power plants to mine bitcoin. “Our nuclear fleet only operates on average at 70% of its capacity. The objective will be to run it at full power […] so that EDF can build bitcoin reserves […] “, she declared this Tuesday.

Bitcoin, not crypto

Bitcoin is a decentralized network of independent nodes that ensures that no entity can take control of it. This decentralization prevents the creation of more than 21 million bitcoins.

Currently, more than twenty gigawatts protect the network, equivalent to 10 to 20 nuclear power plants. Bitcoin represents 99% of global Proof of Work, which offers security guarantees far superior to those of Proof of Stake while capitalizing on surplus renewable energy.

Moreover, bitcoin is not in the hands of insiders. Its true decentralization prevents any significant changes without broad global consensus. In contrast, the protocols of most cryptocurrencies are influenced by obscure foundations, companies, or personalities. While Vitalik Buterin continues to weigh heavily on the evolution of Ethereum, Satoshi Nakamoto has disappeared.

Another major distinction with altcoins is that bitcoin is an asset without an issuer (Asset without an issuer). It is a sort of immaculate conception that cannot be reproduced, guaranteeing that bitcoins have been and will remain created fairly and transparently.

This contrasts sharply with the astronomical quantities of ETH, SOL, or ADA that their founders have arrogated for free. For example, 70% of ETH was pre-mined, of which 9.9% was for the founders. The rest was sold at a price of $0.30 for 1 ETH.

It is much worse for XRP and Solana:

All of this is to say that the finite money supply of bitcoin is guaranteed by its decentralization, which is much less true for other more or less centralized digital assets.

This fixed supply guarantees the scarcity essential to any respectable stateless international reserve currency. Don’t miss our article: The hidden goals of Donald Trump…