Let’s clear one point up – The United States already possesses more bitcoin than any other government globally.
https://x.com/pete_rizzo_/
While this information is accurate, you wouldn’t necessarily realize it from the excessive amounts of FOMO being stirred up by industry advocates on social media.
On X, BTC Inc CEO David Bailey has been advocating for an Executive Order by President Donald Trump to implement this immediately, while Satoshi Action Fund founder Dennis Porter has been igniting enthusiasm at the state level, promising to prompt states to purchase ahead of the federal government in some kind of patriotic precursory action.
Look, I’m in favor of the Strategic Bitcoin Reserve. Indeed, the United States requires a long-term strategy for the dollar, one that likely involves relinquishing its status as a global reserve currency.
Yes, the U.S. ought to actively enhance the Bitcoin market and sector. However, this doomsday perspective is thoroughly contradictory to all rationale.
No other governments are acquiring Bitcoin, nor do they have any (public) intentions to do so. The second-largest state holder of Bitcoin is supposedly China, which has officially prohibited its usage.
Among nations that are genuinely buying Bitcoin with purpose – Bhutan has just over 10,000 BTC, while El Salvador remains around 6,000 BTC. Neither are likely to surpass the amount of Bitcoin that the U.S. government currently holds – nor do either possess a widely used money printer.
Let’s be clear – even if the U.S. government refrained from purchasing Bitcoin for a decade, its reserves would still be substantial. Sure, one might contend that it’s about conveying a message, about demonstrating leadership on the global stage, but there are numerous ways this can be accomplished without exhausting political capital.
Is the Strategic Reserve more crucial than regulation that would genuinely reduce barriers for our industry? That would empower businesses to expand the sovereign use of the currency?
Let’s not overlook the dreadful tax laws that make bitcoin holders hesitate before utilizing bitcoin for purchases.
All this suggests that advocates for the Strategic Bitcoin Reserve shouldn’t exaggerate their influence – significant benefits can arise simply by persuading the U.S. government to cease selling the Bitcoin it currently owns, and arguably greater advantages could be realized, or at the very least, far worse laws could be repealed.
Would it be beneficial if the U.S. government began acquiring Bitcoin? Absolutely. The sector has political capital to utilize, but let’s channel it towards advancing Bitcoin adoption, not merely inflating our assets.
This article is a Take. The views expressed are solely those of the author and do not necessarily represent those of BTC Inc or Bitcoin Magazine.