Making #Bitcoin a strategic reserve asset is ONLY Step 1.
$BTC should also be leveraged in economic policy.
New Idea š”
USA šŗšø should be collecting tariffs in $BTC
THEN issue #BitcoinBonds
In 2023, USA collected ~$80 Billion in tariffs.
Assuming tariffs were paid in bitcoin and were sold via bitcoin bond issuance on a monthly basis...
US gov could have raised an additional ~$400 Billion via increased Treasury sales - thats almost 10% of ALL 2023 tax revenue value!
Here's how it works:
US collects ~$6B of $BTC in tariffs in one month.
End of month US Treasury announces a Bitcoin Bond auction for $30B.
$24B gets lent to gov via 5yr UST Note @ ~4.5%
Treasury sells back the $6B of $BTC, without slippage or fees, to the bond fund.
US gov turns each months $6B of tariffs into $30B of inflows.
For the lenders:
Over the course of 5 years...
$24B in 5yr UST matures at a value of $30B
That's why it's called a PRINCIPLE PROTECTED NOTE.
Even if the $6B of $BTC went to $0.00, the LENDER would NOT LOSE ANY PRINCIPLE loaned.
Lenders lent $30B and receive back $30B.
That means the REAL YIELD is produced by the $6B of $BTC price performance over the 5yr period:
If BTC price goes down by 50%, lender gets paid back $33B - 2%APY
If BTC price stays flat, lender gets paid back $36B - 4% APY
If BTC price doubles, lender gets paid back $42B - 8% APY
If BTC price goes 5x, lender gets paid back $60B - 20% APY
If BTC price goes 10x, lender gets paid back $90B - 40% APY
Imagine the best performing asset in the world being the low-risk lending source of yield šø
This creates a positive feedback loop that drives value + demand:
1) Higher yields = Higher demand
2) Higher demand = more issuance
3) ā¬ļø issuance = more buying $BTC
4) More buying $BTC = Higher yields
5) š
There's A LOT of issues the USA šŗšø faces today that can be solved with #Bitcoin Bonds
With #Bitcoin Bonds we can:
#RecapitalizeTheRepublic šŗšø
#MakeSocialSecurityGreatAgain