sms on Nostr: The BITCOIN Act is still being framed as budget neutral, but don’t let that fool ...
The BITCOIN Act is still being framed as budget neutral, but don’t let that fool you; its implications are anything but.
The plan is to accumulate 1 million BTC in five years, supposedly funded through Federal Reserve remittances and gold revaluations.
What does that mean?
Fed remittances: When the Federal Reserve earns income, primarily from interest on government bonds, it typically remits excess profits to the U.S. Treasury. If this revenue stream is directed toward Bitcoin purchases, it could act as a stealthy accumulation mechanism without requiring new taxes or explicit spending bills.
Gold revaluation: If the U.S. government officially raises the price of gold on its balance sheet (effectively devaluing the dollar relative to gold), it creates an accounting gain. That gain could then be used to “fund” Bitcoin acquisitions without directly printing more dollars…
In essence, these methods allow for a massive Bitcoin accumulation without overt deficit spending, making it more politically palatable while still reshaping the country’s monetary strategy.
Why is this important?
If the BITCOIN Act becomes law, it would make the Bitcoin Strategic Reserve (BSR) far harder to dismantle than if it were established through an executive order alone.
Why?
Laws outlast administrations: An executive order can be reversed with the stroke of a pen. A law requires Congressional repeal, which is much more difficult.
Institutional entrenchment: Once the BSR is codified into law, government agencies, financial institutions, and national security interests will integrate it into their frameworks. This creates momentum that makes reversal politically and economically costly.
Legal and financial precedent: If Bitcoin becomes a formalized part of U.S. reserves, future governments will find it far harder to justify unwinding it without triggering market instability…
This isn’t just about whether the U.S. stacks 1 million BTC.
It’s about Bitcoin becoming an irreversible pillar of national monetary strategy.
A budget-neutral Trojan Horse that, once inside the gates, cements Bitcoin at the heart of the financial system…forever.
The question is: is this act the beginning of a U.S. Bitcoin standard, hidden in plain sight?
The plan is to accumulate 1 million BTC in five years, supposedly funded through Federal Reserve remittances and gold revaluations.
What does that mean?
Fed remittances: When the Federal Reserve earns income, primarily from interest on government bonds, it typically remits excess profits to the U.S. Treasury. If this revenue stream is directed toward Bitcoin purchases, it could act as a stealthy accumulation mechanism without requiring new taxes or explicit spending bills.
Gold revaluation: If the U.S. government officially raises the price of gold on its balance sheet (effectively devaluing the dollar relative to gold), it creates an accounting gain. That gain could then be used to “fund” Bitcoin acquisitions without directly printing more dollars…
In essence, these methods allow for a massive Bitcoin accumulation without overt deficit spending, making it more politically palatable while still reshaping the country’s monetary strategy.
Why is this important?
If the BITCOIN Act becomes law, it would make the Bitcoin Strategic Reserve (BSR) far harder to dismantle than if it were established through an executive order alone.
Why?
Laws outlast administrations: An executive order can be reversed with the stroke of a pen. A law requires Congressional repeal, which is much more difficult.
Institutional entrenchment: Once the BSR is codified into law, government agencies, financial institutions, and national security interests will integrate it into their frameworks. This creates momentum that makes reversal politically and economically costly.
Legal and financial precedent: If Bitcoin becomes a formalized part of U.S. reserves, future governments will find it far harder to justify unwinding it without triggering market instability…
This isn’t just about whether the U.S. stacks 1 million BTC.
It’s about Bitcoin becoming an irreversible pillar of national monetary strategy.
A budget-neutral Trojan Horse that, once inside the gates, cements Bitcoin at the heart of the financial system…forever.
The question is: is this act the beginning of a U.S. Bitcoin standard, hidden in plain sight?