#BitcoinWithTariffs

Is buying Bitcoin with tariff revenues a smart move?

The recent step announced by the Trump administration to potentially use tariff revenues to purchase Bitcoin has sparked much debate and has brought renewed attention to the growing role of digital assets in national strategies. Honestly, when I first read the news, I felt that this was quite a bold move, but at the same time, it shows a kind of out-of-the-box thinking.

At a time when many governments are still cautious about digital currencies, seeing a country like the United States considering directing funds from tariffs— which are considered sovereign income— to buy a volatile asset like Bitcoin opens up many doors for discussion.

Is it a smart move? Possibly. Bitcoin is considered "digital gold" in the eyes of many, and it has a history of strong long-term growth. So if purchased at the right time, it could be a successful investment and strengthen American reserves with a currency that no nation controls.

But is it risky? Definitely. The volatility of Bitcoin is well-known, and the worst-case scenario is that the government buys at a high price and then the price drops significantly, resulting in substantial losses. This raises the question: Is it reasonable to expose state funds to such risks?