Understanding the Strategic Framework of the U.S. Cryptocurrency Bill
Understanding this will give you confidence to hold cryptocurrencies long-term, and comprehend Trump's slogan about Bitcoin: Do not sell any Bitcoin you hold!
- U.S. Purpose: Resources stored by the government for strategic purposes or emergencies
- Ensure national security, economic stability
Traditional Strategic Reserves
1. **Strategic Petroleum Reserve**
- Address oil supply disruptions
- Stabilize fuel prices
2. **National Hydrogen Reserve**
- Support science and industry (e.g., MRI equipment)
3. **Grain and Cheese Reserve**
- Food security, agricultural stability
4. **Gold Reserve**
- Financial stability, support for the monetary system
5. **Medical Supplies Reserve**
- Address public health emergencies (e.g., pandemics)
Background of Recommendations
- U.S. debt exceeds $35 trillion
- Limitations of traditional solutions
- Bitcoin's potential: average annual growth of 63.5%, outpacing inflation
Emerging Reserve: Bitcoin Plan
1. **Original Bill Proposal**
- Purchase 1 million BTC (5% of total supply)
- Purchase no more than 200,000 BTC per year
- Hold for 20 years, only for debt repayment
- Managed by the Treasury Department's secure network
2. **Asset Forfeiture Clause**
- Approximately 200,000 BTC already confiscated
- No BTC will be sold within four years
- Government will not purchase additional BTC
3. **Source of Reserve Funds**
- Assets derived from fines and forfeitures
Potential Impacts
1. **Price Increase**:
Mass government purchases will boost demand
2. **Improved Regulation**:
Policy framework becomes clearer
3. **Control Controversies**:
Government may intervene in the Bitcoin network
4. **International Impact**:
Lead global reserve trends
International Case Studies
- **El Salvador**
- Reserves nearly 6,180 BTC
- Profit of 38% (approximately $271 million)
