Let’s get one thing out of the way: the United States already owns more bitcoin than any government in the world.
https://x.com/pete_rizzo_/
Although this data is trueYou wouldn’t know this exactly from the obscene amounts of FOMO generated by industry lobbyists on social media.
At X, BTC Inc CEO David Bailey has pushed for an Executive Order from President Donald Trump that would accomplish this on day onewhile Satoshi Action Fund founder Dennis Porter has stoked enthusiasm at the state level, promising to get states active in purchasing before the federal government as an act of patriotic front running.
Look, I like the Strategic Bitcoin Reserve. Yes, the United States needs a long-term plan for the dollar, one that will (in all likelihood) involve the dollar giving up its status as a global reserve currency.
Yes, the US should actively encourage the Bitcoin market and industry. But this ‘heaven-is-the-descend’ approach could not be more contrary to all reason.
There are no other governments buying Bitcoin, nor with any (public) plans to do so. Bitcoin’s next largest state holder is apparently China, which has formally banned its use.
Of the countries actively buying Bitcoin with intent – Bhutan has just over 10,000 BTC, while El Salvador remains stuck at around 6,000 BTC. Neither is going to buy more Bitcoin than the US government already has – and neither has a very popular money printer.
Period: Even if the US government didn’t buy Bitcoin for ten years, the supply would be significant. Sure, you can argue that it’s about sending a message, about showing leadership in the world, but there are many ways this can be done without wasting political capital.
Is a strategic reserve more important than regulations that will actually remove the barriers for our sector? Will this allow companies to actually increase the sovereign use of the currency?
Let’s not forget the terrible tax laws that make bitcoin holders think twice before using bitcoin for purchases.
All of this is to say that strategic Bitcoin Reserve proponents shouldn’t overplay their hand – there is a lot to be gained from getting the US government to stop selling the Bitcoin it already has, and there are arguably bigger profits to be made, or on are least much worse laws to erase.
Would it be great if the US government started buying Bitcoin? Certainly. The industry has political capital to cash in, but let’s use it to spread Bitcoin adoption, not just empty our pockets.
This article is a To take. The opinions expressed are solely those of the author and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.