Why is the Trump Plan create expert coding reserves?

AA tendency took a tremendous stumbling in February, the encryption markets rose on Sunday after Donald Trump advertisement It will create a strategic reserve for national encryption. Trump wrote on the social truth that the working group “is advancing” in facilitating the strategic federal purchases of Bitcoin, Ethereum, and three other smaller cryptocurrencies.

This announcement comes before the top of the first encrypted currency at the White House on March 7, and depends on Trump stabilizing The encryption during the past year, which included a Checks project, “Crypto CZAR” The position in the White House, and Trump Mimi currency Which decreased the price from $ 70 to $ 13 in a month and a half.

It is unclear whether taxpayers will spare, or how much it will be, or whether it will be used to pay the American federal debt, as some have suggested.

Trump’s strategic reserve declaration cash From economists and even some One of the biggest reinforcements in Crypto. The United States has a long history of creating strategic reserves in major assets such as oil, in order to ensure access to prices and their stability in times of crisis. Stephen Sichti, an economist and professor at Brandis International Business College, who has written skeptical for several years, says that the encryption reserves seem differently different in nature, because it does not depend on the importance of the nation’s origin, but the idea that its prices will increase to move forward for several years.

Sixchete described the idea of ​​a “ridiculous” strategic encryption.

“It is stupid to buy risky assets with influence in the hope of facilitating the payment of your debts,” he says.

What is strategic reserve?

In the past, the United States has stored rare assets to protect against display disorders. For example, the Congress established a strategic strategic oil reserve in 1975 after causing the blockade crisis in Arab oil Lack of gas Throughout the country and merged the American economy. His supporters argued, by creating a petroleum store, price stability.

The United States also I created strategic reserves Other commodities, such as medical equipment and helium. “The strategic reserve is intended for something necessary, either for national defense or national economic security,” says CECCHITTI. “What exactly is necessary in Bitcoin in our life that makes it until the United States wants a reserve?”

Why does encryption fans want to reserve?

Most encryption fans do not want to install prices; Instead, they hope that the reserve will send prices up. Federal purchases for encryption will send an indication that encryption here to survive, and encourage other respected financial institutions to buy. Other governments may also follow, create their own reserves, and increase prices.

Some bitcoin also believes that the reserve can serve as a hedge against inflation. They point out the fact that the dollar has become less valuable over time, and they argue that the value of bitcoin may be stronger than the dollar during global economic crises.

However, encryption has proven great volatility during recent geopolitical conflicts, such as Russia’s invasion of Ukraine. The American government can actually buy bitcoin Threat Some experts say the global value of the dollar. Austin CampbellCheerful businessman and professor at New York Stern University, Books on x “We must do our best to keep our financial house in order in terms of dollar, which means reducing the deficit and future expenses to a sustainable path, and we do not try to obtain assets that benefit from the decline in the dollar.”

How will Trump pay the encryption reserves?

On Sunday, many online people expressed concern that Bitcoin reserves can be funded by taxpayers, which effectively transforms money from ordinary Americans to cryptocurrencies and billionaires. However, Crypto Crypto CZAR DAVID SACKS On x On Monday, writing: “No one has announced a tax or spending program. Maybe you should wait to find out what is already suggested.” (He is also Displane accusations Personally, he stands to benefit from the proposal.)

The application of the American law is already carries About 200,000 Bitcoinand He deserves About $ 17 billion, which was often obtained through criminal seizures. These assets, run by the American project service, are usually sold by supporting law enforcement and compensation for crimes related to encryption. It is not clear whether Trump aims to participate in that bitcoin of the reserve, or how the government can transfer these funds from justice to the cabinet.

In response to email questions, a White House actor refers to the bags X post Which stated that more information will be provided at the summit on Friday.

Can the encryption reserve help pay the debts of the United States government?

Encryption fans believe that the answer to this question is yes. Senator Cinemia Lomes, who proposed a bitcoin budget bill last year, Compete Because Bitcoin will continue to increase value, investment simply will collect money much more than tax imposition. She said that these gains can be sold after that, allowing the United States to do so Lower her debts In 20 years. (the invoice He does not have participating sponsors.)

But experts say that relying on volatile origin, such as Bitcoin, to reduce debt is risky. “Just because one of the assets has risen in the past does not mean that it will rise in the future,” says Chester Speer, Professor of Finance at Tiber College for Carnegie Mellon University. “If we think our markets are somewhat effective, we expect the markets to be asput, and this indicates that there will be a lot of predictive power from the past.”

CECCHITTI has brought the trick to the owner of the house that runs their gambling credit card in the hope of paying its mortgage faster. He also argues that the use of American debt to buy a large amount of encryption “will increase the possibility that credit rating agencies will reduce the United States, which increases the cost of borrowing.”

Meanwhile, some encryption fans are also anxious about what will happen to Bitcoin if the plan is already working. If the price of bitcoin increases significantly, then the United States decides to sell the reserve to pay its debts, then this treatment itself can lead to a significant decrease in the price of bitcoin.

Why do some encryption fans are not satisfied with the Trump advertisement?

While the largest encryption market responded positively to the Trump advertisement, influential encryption sounds criticized it for a large number of reasons. Some have pointed out the paradox of the federal government that has a lot of power over the currency that is supposed to be decentralized. “It is wrong to steal my money for GRIFT on the left; it is also wrong to impose taxes on BRO fan plans,” books Businessman Joe Lonsale on X.

Others are concerned that the reserve will be directed to fraud and internal trade. An unknown dealer has audited Make a $ 200 million bet on bitcoin Hours before the announcement, and the profit immediately for a profit of $ 6.8 million.

Trump’s advertisement also surprised many people to include it not only Bitcoin, but also the smallest more volatile currencies like ADA and XRP. “So the United States will use taxpayer money on XRP, Sol and Ada? Why does one build a strategic reserve for something you can only print? Bad look,” books Gabor Gurbacs on X.