The 2024 Bitcoin Conference will go down in history, with two presidential candidates coming to capture the votes of tens of millions of American bitcoiners.
I am a bitcoiner
Robert Kennedy set the stage by announcing his intention to build a strategic reserve of bitcoins equivalent to the US gold reserves (8,134 tonnes of gold).
Although the polls are far from predicting a victory for R. Kennedy in November, his speech was not in vain. It helped force the hand of Donald Trump who promised the very next day to put an end to the government's crusade against bitcoin.
Here are probably the two strongest declarations of allegiance in his 45-minute speech:
“America will once again become a nation that protects property rights, privacy, freedom of transaction, freedom of association and freedom of speech. […] Bitcoin stands for freedom, sovereignty and independence from coercive government control. […] There will never be a CBDC if I am elected president.”
As a good politician, Trump did not forget to brush his audience in the right direction:
“Those of you in this room are the heirs to generations of pioneers, patriots, risk-takers and renegades who built the modern world. You are the Edisons, the Wright brothers, the Carnegies and the Henry Fords of modern times. What you do may well outlive us all and inspire humanity for many generations to come.
This is a momentous day in the history of your industry. You are building America's future with intelligence and courage. Most people don't have that courage. My job is to set you free and let you do what America does best: win.
BTC Strategic Reserve
It's done, bitcoin will officially be an international reserve currency if Trump wins in a few months.
Concretely, the miracle worker will establish a “strategic reserve”. In other words, the 210,000 bitcoins seized by Justice will not be sold. Quite the opposite of Germany, which has just sold off 50,000 BTC…
“If elected, it will be the policy of my administration to hold 100% of the bitcoins it owns and acquires.”he said.
Republican Senator Cynthia Lummis then unveiled a bill called the “Bitcoin Reserve Bill” that would increase this reserve sixfold.
“The bill states that we will create a strategic reserve of bitcoins. […] This reserve will initially be endowed with 210,000 BTC. This law also authorizes the purchase of one million BTC over the next five years.she announced.
Cynthia Lummis said that this reserve should be held for at least 20 years. The ambition is to “reduce the American public debt by half by 2045.”
Your servant doubts such an outcome. That said, acquiring a substantial amount of bitcoins before other nations will certainly be a profitable strategy.
If, as D. Trump predicts, the capitalization of bitcoin exceeds that of gold, this million BTC will weigh (at the current price) around 1000 billion dollars. That is to say barely 1/35 of the US public debt…
Bitcoin is not quite the silver bullet that will wipe out debt or replace the fiat system. But it can become the stateless, uncensorable international store of value the world has been crying out for.
Bitcoin vs Dollar
For Donald Trump, “It is not bitcoin that threatens the dollar, but the fiscal policy of this government.”
That's a nice word. Unfortunately, the fiat system is a ponzi that by definition requires perpetual monetary expansion. The probability that Donald Trump will resolve the budget deficit is close to zero…
Bitcoin is not a magic currency. Nevertheless, putting bitcoins in reserve is a positive signal to nations that are increasingly reluctant to put their reserves in treasury bonds.
The BRICS no longer want to trade in dollars and have been accumulating gold for years with a view to restoring the Gold Standard. A bitcoin reserve can be seen as a step in this direction.
Donald Trump knows that a good part of international tensions are linked to the petrodollar which offers the United States the privilege of a chronically negative trade balance.
Russia is well aware of this. Detailing the road map to calm international relations, Russian Foreign Minister Sergei Lavrov warned this month “that there can be no monetary monopoly in a multipolar world”.
On this subject, don’t miss our article: Russia pleads in New York for end of dollar monopoly.
If Donald Trump is sincere when he says he wants “to end the third world war”it will be necessary to agree on a new international reserve currency and to resolve the gargantuan trade deficit of the United States.
The fact that he expects that “Stablecoins help extend dollar dominance around the world” suggests that we are not there yet… His ambition to reindustrialize the country is, however, going in the right direction.
The day will come when nations will demand payment for their exports in gold or bitcoin. By having the audacity to create a national reserve of bitcoins before anyone else, the United States will buy itself some breathing room.
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