Trump’s “Strategic Bitcoin Reserves” plan comes with development

The reserve has been developed as a way to compensate for the energy losses resulting from inflation in US dollar. On Thursday, the bags repeated this line of the argument, Publishing on x“The United States will not sell any bitcoin deposited in the reserve. It will be kept as a value store. Reserve is similar to a digital fortress for the encrypted currency that is often called” digital gold “.

It was a reserve construction plan He met with joy By Crypto believers, who saw it as a sign of the legitimacy of their new industry and the financial benefit from up to a pledge by the US government not to pressure the Bitcoin price by selling large quantities in the market.

But the plan has Economists educatorsThose who say that the idea depends on two defective assumptions: that the price of bitcoin is guaranteed to rise, and secondly, that the government is able to sell bitcoin at some point to US dollars without transferring the market to the state of the enemy. The choice of storage instead of selling Bitcoin, which was seized by law application, also comes with an alternative opportunity cost; While assets like stocks and bonds generate income, Bitcoin does not, which makes keeping them expensive.

“The presence of reserves only consists of bitcoin that the government owns less hateful (than using tax dollars to buy additional metal currencies) but is still expensive,” says George Seljin, an honorary manager at the Center for Monetary and Financial alternatives at the Cato Institute, a US research tank that enhances editorial principles. “There is no simplicity of the logical basis.”

Meanwhile, Democratic lawmakers have registered concern about the conflict of potential interests related to previous investments by bags and other members of the Trump administration in the coins provided in US stocks. Elizabeth Warren wrote, Senator in Massachusetts message Added to the bags on March 6.

Hellman says that one of Trump’s possible effects is to follow up on the encryption reserve plan that individual American countries and other national governments have been launched to form them. “I expect the American countries to start buying some of these assets. Hilman says:” If the United States government will keep them, it is likely that the countries will do this too. “And guess what? Other governments around the world will do the same. The United States has always been the bell in financing. “

Indeed, members of Congress in countries, including Texasand Ohio and New Hampshire I have submitted bills that would allow their state treasury to buy bitcoin; As well as politicians and the personalities of power in Brazilthe Czech Republicand Hong Kong Elsewhere.

Once the American encryption stocks are created, especially if Trump succeeds in allocating them in the law, it is unlikely to be resolved at all – in place by the same political forces that brought them into existence. The same thing Fire beads from the dollars of the encryption industry Used to press to create it, as Selgin claims, any politician may try to use assets.

“Even if any of the reserves has been estimated (in value), there is no news that the government will benefit from this estimate through sale,” Selgin claims. “If there is anything, it is likely that the same people in the encryption community who were pressured to create will be extensively pressure against their perception. They are interested in their capital gains.”