7h00 ▪
7
min reading ▪ by
Nicolas T.
There are not many people left to criticize bitcoin which is sinking $100,000 thanks to a convinced American government.
The Bitcoin Strategy
The chances of the United States creating a strategic bitcoin reserve are increasing day by day. As a reminder, Donald Trump committed last July to “keep all bitcoins that the United States owns or acquires”.
It is in this context that Senator Cynthia Lummis proposed purchasing one million bitcoins through the sale of the country's gold reserves. This strategy is endorsed by Michael Saylor. The CEO of Microstrategy sees this as an opportunity to kill two birds with one stone:
“Sell gold to buy bitcoin. This way the operation will be free. Better yet, you will demonetize the gold of our enemies. Their assets will fall to zero while ours will reach 100,000 billion dollars »he launched on Yahoo Finance.
An opinion reiterated on Alex Thorn's microphone at the end of last week:
A certain skepticism remains because the US Congress will have to be on board. However, the American president could act alone, by decree. This is what Jack Mallers suggested:
“I know that Donald Trump is considering the possibility of signing an executive order on day one to create this strategic reserve of bitcoins. And this via the 'Dollar Stabilization Act' which gives the president great room to maneuver to protect the dollar. »
Furthermore, when asked this weekend whether the United States would create a bitcoin reserve, Trump responded in the affirmative. “Yes, I think so, we are going to do great things”.
These statements are not unrelated to the new all-time high above $106,000.
Bretton Woods 2.0
If Donald Trump really wants to end the war in Ukraine, this will require a new Bretton Woods, a redefinition of monetary balances where the president finds himself between the dollar and bitcoin. The BRICS no longer want the dollar and bitcoin provides a solution to this revolt which is the backdrop to geopolitical tensions.
The next Treasury Secretary Scott Bessent said nothing else during a conference organized by the Manhattan Institute last summer:
“It is not impossible that we will soon be heading towards some kind of great global economic rearrangement, something similar to Bretton Woods […]. There's a good chance this will happen over the next four years and I'd love to be a part of it. »
This speech is consistent with the Republican ambition to reindustrialize to reduce the trade deficit. An abysmal deficit from which the Americans can benefit from the fact that they print international currency.
To reduce it, Donald Trump promised expedited extraction permits to companies that invest at least one billion dollars in the United States. Indeed, if China (which controls most of the global mining supply chain) shuns the dollar, it will be necessary to dig again in America.
This is the strategy to preserve the value of the greenback: reduce deficits by producing again on American soil while increasing customs taxes to speed up the process. Faced with the emergence of BRICS, Uncle Sam no longer really has a choice. We will have to trade on equal terms sooner or later.
The question then arises of the next international reserve currency. All eyes are on the gold that China and Russia have been accumulating for many years.
It is easy to imagine that Washington might want to try one last gamble by swapping its gold for bitcoin, which is undoubtedly a better store of value.
FOMO global
All nations with significant foreign exchange reserves will follow suit. The signals pointing in this direction are legion. MPs from all over the world are taking action, notably in Brazil, Japan and Russia.
The Russian president even recently declared that “no one can stop bitcoin”. Russia controls around 17% of the network's computing power. The CEO of the Russian miner Bitriver even plans to overtake the United States (35%) very soon.
Furthermore, small countries have already taken the plunge. This is the case of El Salvador (where bitcoin is legal tender) and Bhutan. Not to mention the countries that act on the sly. This is the case for the United Arab Emirates, according to former Binance CEO CZ.
Asia is not left out. Former Thai Prime Minister Thaksin Shinawatra expressed confidence that bitcoin could reach $850,000. The current government (led by his son) could well imitate El Salvador.
Even Germany is starting to regret selling off its 50,000 BTC at an average price of $54,000. Former German Finance Minister Christian Lindner criticized Chancellor Olaf Scholz for this strategic error on Monday:
Finally, the insolent success of Microstrategy (which has just entered the NASDAQ) does not go unnoticed by multinationals. Microsoft may have said no, but the evolution of American accounting rules bodes well. Since December 15, American firms holding bitcoins will no longer be penalized by an outdated accounting framework.
The road is clear. As Donald Trump's former campaign manager said: “To those celebrating $100,000, you will celebrate much higher. »
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Nicolas T.
Reporting on Bitcoin, “the goddess of wisdom, feeding on the fire of truth, exponentially growing ever smarter, faster, and stronger behind a wall of encrypted energy”.
