He marketed reserves as a way to offset the loss of electricity from spending due to dollar inflation. On Thursday, Sax reiterated the argument and posted on X that “the United States will not sell Bitcoin stored in the reserve. It will be saved as a store of value. The reserve is like the digital fort Knox, used in cryptocurrencies, commonly known as “digital gold.”
Crypto Faithful encountered plans to build reserves that viewed it as a signal of new legitimacy of its industry and benefited from financial gains from the commitments of the U.S. government, rather than reducing the price of Bitcoin by selling large quantities to the market.
But the plan confuses economists, who say the idea relies on two flawed assumptions: guaranteeing that Bitcoin’s price will rise, and secondly, the government will be able to sell Bitcoin to the dollar at some stage without tilting the market into a promise. Selling Bitcoin that chooses to hoard rather than being caught by law enforcement also brings opportunity costs; although assets like stocks and bonds generate income, Bitcoin does not make it expensive to hold.
“With a reserve composed of only Bitcoin, the reserves owned by the government are less annoying [than using tax dollars to purchase additional coins] But it’s still expensive. “There is no good reason at all.”
Meanwhile, Democratic lawmakers expressed concern about the potential conflict of interest in investments in Mababa and other members of the Trump administration in U.S. stocks. “Lawmakers deserve strong leaders who prioritize the public interest,” Massachusetts Sen. Elizabeth Warren wrote in a letter to Sacks on March 6.
Hillman said one possible impact of Trump following the crypto reserve program could be that U.S. states and other governments set out to form their own countries. “I hope that the U.S. states will start buying some of these assets, too. Because if the U.S. government is going to hold it, the states are more likely to do that,” Hillman said. “Guess what? Other governments around the world will do the same. The United States has always been the leader in the financial field.”
Members of Congress in states, including Texas, Ohio and New Hampshire, have introduced bills that would authorize their respective state treasury to buy bitcoin; just like politicians and authority figures in Brazil, the Czech Republic, Hong Kong and elsewhere.
Once two U.S. cryptocurrencies are established, especially if Trump successfully incorporates them into law, it is impossible to dissolve them – mastered by the same political forces that make them a reality. Selgin claims that the funds used to lobby for the same fire crypto industry that it creates will be funded by any politician who may attempt to use the assets.
“Even any reserve must be appreciated [in value]no telling the government would take advantage of this appreciation by selling. “If anything, it’s very likely that lobbying creates them in the crypto community will be vigorously lobbying whether there is any realization of them.” They are interested in their capital gains. ”
