What no one understands about the Trump Bitcoin Reserve

President Donald Trump signed Executive order Establishing “SBR” and “SBR” and “Digital Assets Stocks of the United States”.

Few understanding the deep effects of this shift in politics. Trump was not just a “legitimate” encryption industry, but he finally clarified the world what is the most important part in this asset category.

Bitcoin: Al -Mukhtar

By creating a “reserve” and “stock” as separate entrepreneurs, the United States government has effectively wiped bitcoin as a unique origin, distinguished from countless other cryptocurrencies. The executive matter requires that all bitcoin currency be seized or confiscated by the federal agencies in SBR, decisively, “is not sold.”

The White House is now explicitly realizes the power of Bitcoin’s scarcity and its role as a triggered value – the factors that remind us of gold. Indeed, in just a few years, the Bitcoin “digital gold” met on the Internet, to an investment thesis of the world’s largest money managers, has evolved into a fact approved by the president in his executive.

In a blatant contradiction, the stock of American digital assets in other cryptocurrencies that have been seized, but with a significantly different approach. The government must “obtain additional stored assets” that exceed those obtained through confiscation or penalties – which are a small part of the already possession of digital assets.

Unlike SBR, the government also shows openness to “potential sales” for such assets, according to the Minister of Treasury as part of his “strategies for responsible supervision” to the stock. This selection throws other digital assets as more expensive tools, and lacks the unique situation granted to Bitcoin.

Sachs Chefer Trump said in interview

“Bitcoin is the original cryptocurrency – it’s the only one that does not have a source; it’s not very central. It has a $ 2 trillion market roof and is the safest – it has never been hacked. We are now more than 15 years away from this trip, and there were many people who were skeptical along the way, and there was a lot of climbing and landing, but here.”

accumulation

The administration also does not stop just detaining Bitcoin, but is preparing to get more. Treasury and Trade Trustees direct to “developing an additional government BTC strategies”, provided that these strategies are “budget neutral” and do not impose additional costs on taxpayers.

Smoothing (including many Bitcoin supporters, no less) claims that this is an empty line that aims to arouse bitcoin holders as one of the most lobby groups in Trump, which distracts from the potential bitcoin purchases that will never be achieved.

However, as anyone who traces the political debate about SBR knows, the government’s accumulation of bitcoin has been clarified in the Senate legislation for several months.

like Proposal By Senator Cinemia Lomes of Wyoming, the Treasury can finance these purchases by issuing new certificates of golden property of the Federal Reserve to reflect the current market prices, creating a large group of billions of dollars.

Selling gold. Buy digital gold. Simple, not controversial, budget is neutral.

Given that the Trade Secretary Howard Lootnik already has “hundreds of millions” of dollars in BTC, and says he is confident of his long -term performance, it is difficult to believe that he will not support this strategy.

Digital gold for the digital experience

Bitcoin support because digital gold places it in a completely new world of all other digital assets. For years, cryptocurrencies such as speculative technological investments have been seen with the total markets that can be smaller and many competitors, such as stocks.

In contrast, the administration’s position reflects the belief in the permanent proposal of Betcoin as a value store. This is a category for some of the most important assets in the world. While the world’s largest shares have market heads ranging from $ 3 trillion to $ 5 trillion at best, the value store of value – gold, real estate and bonds – a cumulative cumulative manner exceeds $ 450 trillion of value worldwide.

This is bitcoin’s potential land grab If it is newly recitalized by the Wider World in this Light. Recognition of the American government is a great way to turn the Overton window in this direction.

Legislative movements to support reserve

Returned by Senator Lomes Bitcoin Law To create SBR on Tuesday, and write it in the law. It was also proposed in the House of Representatives by MP Nick B. Beach from Alaska, both of which indicate that the nation accumulates a million BTC for its reserves.

Their efforts aim to ensure the permanence of reserves, and to protect it from the whims of future departments, who can cancel EO for the president with a stroke. With many participating sponsors, there is an increased consensus with the political right on the importance of Bitcoin strategic and the desire to enhance its position as a backup asset.

The world will monitor to find out how this bold experience is displayed.