In Bitcoin We Trust?

I doubt the phrase “In Bitcoin We Trust” will ever appear on US currency but, given the horrid state of America’s debt-addled finances, maybe it should.

As part of his presidential campaign, DJT promised to include bitcoin in America’s strategic reserve of assets (which, by the way, is supposedly anchored by 8,000-some-odd tons of gold, but who really knows, since the Federal Reserve has refused to allow the US government to audit its own gold holdings since the 1950s. Kinda sus, no?)

Anywho…

Trump has some ideas on accumulating 1 million bitcoin over the next several years, starting with a base of roughly 200,000 BTC that Uncle Sam already owns through criminal asset seizures.

He’s not alone in his thinking.

Wyoming Senator Cynthia Lummis, known as the Bitcoin Senator, is working the halls of Congress to pass a bill she introduced called the Boosting Innovation, Technology, and Competitiveness Through Optimized Investment Nationwide Act—simply referred to as the “Bitcoin Act.”

The gentlelady from Wyoming has said that a bitcoin reserve would “supercharge the US dollar’s position as the world reserve currency for decades to come.”

She might be right.

If the US dollar were backed by a million bitcoin… and if bitcoin soared to $1 million as I and many others expect before the end of the decade… America’s bitcoin reserve would amount to $1 trillion. That would roughly match the value of 8,000-some-odd tons of gold at about $4,000 per ounce.

The US money supply is about $21 trillion, so we’re talking about bitcoin repping roughly 5% of that. And assuming the Fed really does still own Uncle Sam’s gold horde, then the US has real assets that would back about 10% of the money supply.

I mean, that’s not nothing.

Sure, it’s not fully backed, but it’s a start.

And I suspect that if that scenario ultimately plays out, currency investors globally would look a bit more kindly on the greenback.

It’s not like they despise the dollar today, but they’re clearly concerned about the debt-laden path America walks. They’re rightly fearful that a debt crisis is coming, which will rip through the dollar like a tornado through a Kansas trailer park.

But if the buck has a bunch of bitcoin backing it, the sentiment likely changes.

Of course, there’s no guarantee DJT’s bitcoin reserve sees the light of day. Congress could pan the idea.

Nevertheless, the thought exercise is what has me going…

For much of bitcoin’s 15 years of existence, much of the world has ridiculed it as a scam, a Ponzi scheme, nothing but digital lint that no one has any real use for except to sell to the next gullible sucker.

I once thought that way too, but then my son convinced me we should build Ethereum mining rigs together, and I started reading up on crypto. And the more I read, the more I realized that crypto is the next iteration of currency and the internet rolled into one technology.

People rag on bitcoin because they can’t see it. And how can anything you can’t see hold value?

Probably the same way oxygen holds value…

Anywho, part two…

The political landscape for crypto is changing. An American government that was for years antagonistic toward the crypto industry, is now rolling out the welcome mat and inviting crypto in from the cold. It has even set out a plate of cookies and some warm milk…

We’re seeing a radical shift in thinking in DC.

Trump on Day One is very likely to can current Securities and Exchange Commission poohbah Gary Gensler, who has been openly hostile toward crypto, and replace him with someone who is pro-crypto.

Given the makeup of the newly elected Congress, my bet is the Lummis bill passes in 2025 because of support from Trump, who will likely see the Bitcoin Act as a convenient way to quickly further his promise of a bitcoin reserve.

And assuming all of that is correct, well, it means the US government will be in the business of buying a bunch of bitcoin starting next year.

For investors like you and me, that’s a bullish sign, surrounded by marquee lights, and further illuminated by a dozen klieg lights.

If you’re investing alongside an entity that can print money willy-nilly, you’re probably on the right side of the trade.

So, you know, as I always say: You might wanna own some bitcoin right about now (and a few other crypto that I’ll come back to soon).