A Theoretical Look at What Could Happen If Trump Creates a US Bitcoin Reserve

CN
4小时前

On January 20, 2025, as Donald Trump is sworn in as the 47th president of the United States, the nation faces an unprecedented financial experiment. Imagine in a bold departure from monetary orthodoxy, his administration moves forward with Senator Cynthia Lummis’s plan to create a U.S. strategic bitcoin reserve. The bill, championed by Lummis and several others, proceeds to allow the Federal Reserve to integrate BTC into its balance sheet and establishes clear directives for safeguarding the country’s economic future in a rapidly digitizing world.

Moreover, the seized 198,109 BTC from criminal forfeitures are kept, reframed not as mere evidence of illicit activity but as the cornerstone of the government’s initial reserves. Critics scoff, warning of risks to financial stability, but supporters hail the move as revolutionary—a hedge against fiat currency debasement and a play to maintain the United States’ global monetary dominance.

If this all came to fruition and the U.S. pivoted, other nations would quickly follow suit. A domino effect begins as central banks worldwide scramble to accumulate bitcoin. El Salvador’s earlier bitcoin adoption, once derided, is vindicated, while larger economies like Japan, Germany, and India initiate bitcoin reserve programs of their own. By mid-2025, the term hyperbitcoinization enters public discourse, highlighting the rapid voluntary adoption of bitcoin as a global monetary standard.

Spot bitcoin exchange-traded funds (ETFs) and exchange-traded products (ETPs) worldwide, holding over a million BTC, see inflows like never before, with public companies like Microstrategy becoming financial juggernauts. In this evolving theoretical tale, the price of bitcoin surges past $500,000 by the year-end, driven by both institutional demand and retail participation.

However, at the same time, this major change initiates another outcome. The allure of bitcoin as a deflationary asset begins to unravel fiat economies. Nations tethered to the U.S. dollar struggle to maintain confidence in their own currencies, and the dollar itself begins to crack under the weight of a population increasingly opting out of the traditional financial system.

If all of the aforementioned events came true, it is not so hard to imagine by 2026, fiat currencies begin to falter under the strain of bitcoin’s ascent. Hyperinflation grips weaker economies, while even the U.S. dollar sees a severe loss of purchasing power. The Federal Reserve’s initial bitcoin holdings grow exponentially in value, but the newfound wealth does little to stem the tide of economic pain for the average citizen. Bureaucrats reap most of the benefits.

Retail investors, finally understanding the significance of self-custody, begin withdrawing bitcoin from exchanges en masse. Meanwhile, institutional actors struggle to adapt to the new reality. ETFs and custodial services once heralded as a gateway to bitcoin for the masses, become prime targets for governmental intervention as policymakers seek to regain control.

The fiat collapse causes major frustrations with the current administration and political shifts start to change. The 2028 presidential election ushers in a new Democratic administration, one intent on reining in the chaos wrought by the bitcoin standard. Citing the need to restore order and protect the economy, the new president enacts an executive order eerily reminiscent of Franklin D. Roosevelt’s Executive Order 6102, which outlawed the hoarding of gold in 1933.

Under this modern decree, all bitcoin held by U.S. entities—ETFs, exchanges, and public companies—is forcibly seized. The government cites national security concerns, framing bitcoin hoarders as economic saboteurs. Public companies holding BTC are gutted as their holdings are confiscated. Major exchanges comply reluctantly but swiftly, leaving millions of retail investors locked out of their funds.

The U.S. government’s actions send shockwaves through the global financial system, yet the price of bitcoin, buoyed by its decentralized nature, continues to climb. By the time the seizures are complete, bitcoin is trading near $1 million per coin.

Amid the chaos, it is also not so hard to imagine a quiet revolution unfolding. Those who foresaw the risks of custodial storage—who transferred their holdings to hardware wallets and protected their private keys—emerge as the true victors. While centralized institutions and ETFs buckle under government pressure, the self-sovereign individuals who embraced the ethos of self-custodied crypto as a tool of financial freedom thrive.

In small communities across the U.S. and the globe, bitcoin becomes the backbone of local economies. By then, envisioning someone cracking the code to let the Bitcoin network expand effortlessly, handling billions of daily transactions, isn’t such a stretch. Following this electronic cash renaissance, transactions once again occur peer-to-peer, away from the prying eyes of governments. These self-custodied holdings become not just a store of wealth but a means of survival.

While this tale is purely theoretical and wildly speculative, I think it’s not beyond the realm of possibility. Should it come to pass, the teachings of the Bitcoin revolution could shine brighter for everyone on the planet: putting faith in centralized entities, be they banks or governments, is a risky bet. In an era where control is constantly being centralized, only those who seize their financial independence can genuinely flourish.

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