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Cryptocurrency News Articles
The United States is preparing to accumulate millions of bitcoins
Mar 14, 2025 at 03:05 am
The goal is to lighten the burden of debt.
The American superpower was the first to massively engage in bitcoin, and this fact is not insignificant. Many have downplayed the possibility of bitcoin becoming an international reserve currency, claiming that the United States would do everything in its power to maintain its monetary hegemony.
To refresh our memory, this dominance dates back to the Bretton Woods agreements (1944). Nations reluctantly agreed to trade in dollars on the condition that they could convert them into gold at a fixed price of $35 per ounce.
The United States broke its promise in 1971 but immediately forced OPEC nations to sell their oil exclusively in dollars, preventing the Old Continent from abandoning the dollar. Since then, all exporting nations have placed their hundreds of billions of dollars in American debt to earn interest.
This is what is known as the petrodollar system, which grants the United States the exorbitant privilege of maintaining a chronically trade-deficit balance without the dollar collapsing.
In essence, the United States lives beyond its means by borrowing from exporting nations. However, this privilege comes at a price. Nearly a third of global public debt is American (36 trillion $).
This debt has become unpayable, leading China to cease placing its trade surpluses there, followed by Russia and many countries in the Sino-Russian bloc.
And while the empire believed it could behead the BRICS through a proxy war in Russia, Plan B may be needed to address the debt problem.
The BTC Plan
It would be highly risky for Europe to refuse to repay the 300 billion euros it owes to Russia, or for the United States to default on the 800 billion it owes to China.
The American government owes about 10 trillion dollars to the rest of the world. Unfortunately, no one wants to continue participating in this Ponzi scheme. When the BRICS refuse to trade in dollars, it signifies that they no longer wish to finance American debt.
So, instead of defaulting and risking a third world war, why not use bitcoin to wipe the slate clean? This is the idea that Michael Saylor proposes in an interview with the French news outlet BFMTV. According to him, the United States could buy 5 to 25% of bitcoins between 2025 and 2035. These bitcoins would generate 16 to 81 trillion dollars, which "would help offset the national debt."
Of course, Mr. Saylor doesn't envision this reserve including anything other than bitcoins. "There is no second best," he claims. According to him, this reserve should consist solely of bitcoins obtained from selling the country's gold stocks. There's no need for ETH, SOL, or any other digital assets.
The crypto lobbies have managed to penetrate the White House, but no one should be fooled. Ultimately, this strategic reserve will be entirely composed of bitcoins.
In response to American strategy, some in Europe are finally waking up. Deutsche Bank has just noted that the American strategic reserve of bitcoins "could set an international standard."
In France, Marine Le Pen proposes using the surplus production from nuclear power plants to mine bitcoin. She stated, "Our nuclear fleet operates on average at 70% of its capacity. The goal will be to run it at full power ... so that EDF can build bitcoin reserves."
Bitcoin, Not Crypto
Bitcoin is a decentralized network of independent nodes that ensures no entity can take control of it. This decentralization prevents the creation of more than 21 million bitcoins.
Currently, more than twenty gigawatts are used to secure the network, which is equivalent to 10 to 20 nuclear power plants. Bitcoin represents 99% of global Proof of Work, offering superior security guarantees compared to Proof of Stake while capitalizing on surplus renewable energy.
Furthermore, bitcoin is not controlled by insiders. Its true decentralization prevents any significant changes without broad global consensus. In contrast, the protocols of most cryptocurrencies are influenced by opaque foundations, companies, or individuals. While Vitalik Buterin continues to heavily influence the evolution of Ethereum, Satoshi Nakamoto has disappeared.
Another major difference with altcoins is that bitcoin is an asset without an issuer. It is a sort of immaculate conception that cannot be replicated, ensuring that bitcoins were and will continue to be created fairly and transparently.
This contrasts sharply with the astronomical quantities of ETH, SOL, or ADA that their founders have claimed for free. For example, 70% of ETH was pre-mined, with 9.9% going to the founders. The remaining was sold at a price of $0.30 for 1 ETH.
For XRP and Solana, the situation is even worse:
* A total of 80 billion XRP were distributed to founders, early investors, and employees.
* For Solana, the founders managed to claim 48.08% of the total supply for themselves and their close associates.
This serves as a reminder that the
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
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- Rep. Gerald E. Connolly Urges US Treasury to Abandon Plans to Establish a Strategic Bitcoin Reserve
- Mar 15, 2025 at 06:45 am
- Rep. Gerald E. Connolly, the Ranking Member of the House Oversight and Government Reform Committee, urged the US Treasury Department to abandon plans to establish a strategic Bitcoin reserve and the digital asset stockpile.
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