He threw up the reserve as a way to compensate for losses in specifications, caused by inflation in the US dollar. On Thursday, Sacks repeated that fight, post on X: “The US will not sell Bitcoin in the spare. It will be held as a WORNS of value. The reserve is like a digital Fort Knox for the cryptocurrency that is often called 'digital gold'. “
The plan to set up a reserve was confronted with jubilation of the crypto believers, who saw it as a signal of the new legitimacy of their industry and benefits financially from what comes down to a promise from the US government not to reduce the price of Bitcoin by selling large quantities on the market.
But the plan has confused economists, who say that the idea depends on two inadequate assumptions: that the price of Bitcoin will be guaranteed to rise and, secondly, that the government would be able to sell Bitcoin back in American dollars at a certain moment without tipping the market in a dive. Choosing to hoard instead of selling Bitcoin seized by law enforcement also comes with opportunity costs; While assets such as shares and bonds generate income, Bitcoin does not do that, making it expensive to hold.
“Having a reserve that only consists of Bitcoin that the government owns is less annoying [than using tax dollars to purchase additional coins] But still expensive, “says George Selgin, director Emeritus for the Center for Monetary and Financial Alternatives at the Cato Institute, an American think tank that promotes Libertarian principles. “There is just no good reason.”
In the meantime, Democratic legislators have been concerned about possible conflicts of interest with regard to earlier investments by bags and other members of the Trump government in coins that are included in the US stocks. “Legislers deserve strong leaders who will prioritize the public interest above their own bottom lines,” wrote Elizabeth Warren, senator for Massachusetts, in a letter addressed to Sacks on March 6.
A possible effect of Trump that follows the crypto reserve plan can be that individual American states and other national governments want to form their own national governments, says Hillmann. “I expect American states to buy some of these assets. Because if the US government will hold them, states this earlier, “says Hillmann. “And guess? Other governments around the world will do the same. The United States have always been the Bellwether in Finance. “
Members of the congress in States such as Texas, Ohio and New Hampshire have already introduced accounts that would allow their respective state problems to buy Bitcoin; Just like politicians and authority figures in Brazil, the Czech Republic, Hong Kong and elsewhere.
As soon as the two American crypto stocks have been established, especially if Trump succeeds in anchoring them in the law, it is unlikely that they will ever be dissolved – held in place by the same political forces that brought them about. The same fire brigade of Crypto industry dollars used to lobby for their creation, claims Selgin, will be called in on any politician who could try to use the assets.
“Even if one of the two reserve would appreciate [in value]It cannot be said that the government would ever benefit from that appreciation, ”says Selgin. “If there is something, it is likely that the same people in the cryptoma community lobbying to create them intensively lobbying against it ever. They are interested in their own power gain. '
