One might think that almost all bitcoiners are always happy about the US government’s notion of getting BTC (and maybe a basket of other cryptoassets) and effectively approved as a global owner. However, I count myself on some holdouts who do not see the development as positive for either Bitcoin or the US government itself. Here are eight reasons why I do not support the policy.
Easy to do is easily removed
If Bitcoiners want a reserve to last, they should look for Trump to seek permission for Congress for a purchase (as is the custom for any major discharge). If this is done only through the Executive Fiat, the next administration will not feel the policy and it may not be much reversible (and nuke the market in the process). If Bitcoiners sincerely believe that the US will benefit from getting Bitcoin and hold it for a long time, then they have no issue insists that the government will pass a law that allows spending for the reserve, rather than having Trump to implement the policy unevenly.
The fact that many Bitcoiners hope that Trump has made a policy without asking Congress for approval shows that they are pursuing a short-term bomb, rather than really being sincere about the long-term reserve for the US of a future democratic administration has no qualifications about immediately removal of the reserve.
Global Reserve Issuer should not disturb oneself
The US is the one who gave the global currency reserve. We still don’t know how the crypto reserve position-as just a investment fund, or something more natural to the dollar like a new commodity-based currency system such as old gold standard.
If the crypto reserve is considered as providing a new backing for the dollar, I believe it will cause significant anxiety in the dollar markets and ark. Effectively, the government will sign that it believes that it no longer has faith in the dollar system as it currently exists, and a radical change is required. I think this will cause high rates to rise, as the market begins to wonder if the US is reflecting on a default in its debt. The government should focus on avoiding investors’ faith in the ability to maintain its debt obligations by promoting pro-change and deficiency policies, not treading through the entire structure of the dollar system.
Many Bitcoiners do not buy this reasoning line and just want to speed up the collapse of the dollar. I view it as a form of financial terrorism. I don’t believe in financial accelerationism or I think Bitcoin – or any other cryptoasset – is ready to serve in support of a new commodity standard for the dollar.
The US has a lot of exposure to bitcoin
American and individual funds hold more bitcoin than citizens of any other country on the planet – almost certainly by a large margin. The US government is already benefiting from this state. When Bitcoin climbs, Americans realize their gains have a government tax debt – either 20% or 40% of their gains based on how long they have been in position.
This is a significant point that will not be noticed. The US is already benefiting when Bitcoin climbs, through tax realizations – more than any other country. In this regard, do we have to choose a massive fight and assert that the US government will get Directly The exposure for these possessions? No one is pushing the US government to get Apple or Nvidia stock. Why bitcoin?
There is no “strategic” value in a crypto reserve
Usually, the US ownership and commodities at the government level are things that may be needed in a pinch, and need to be accumulated in advance. Petroleum reserve is a good example, because oil is clearly an important commodity, and in a crisis, we may not get all the oil we need.
We also maintain reserves of other types of strategic properties, such as medical equipment and equipment, rarely mineral soil, helium, metal such as uranium and tungsten, and agricultural goods. All of this has a clear and clear goal: creating a reserve that can be dipped in an emergency time.
We also have foreign FX, in case we need to make interventions in the currency markets, though these interventions are especially rare. There is no clear strategic use for bitcoin (and certainly not cardano or ripple). Ordinary Americans do not need a “supply” of bitcoin or any other cryptoasset to support their quality of life. This could change if the entire financial system runs on a blockchain and we need tokens for gas (a similar “industrial” use of me), but that’s not the state-of-play right now. The only “strategic” use for bitcoin is simply going to any other financial state-level properties and its sale later, but you can do this with any other financial property.
Of course, if you are going to eventually return the dollar with Bitcoin to some kind of Neo Gold standard, then it will have a strategic use (where you must refer back to point #2). But I don’t think that’s the goal now.
A crypto reserve indicates the amount of Bitcoin proposal
Mixing Bitcoin with the rival Cryptoassets Ethereum, Cardano, Solana, and XRP and gave them all equal governments accidentally indicating Bitcoin and making it unimaginable from these properties. Bitcoin is just one of the bunch with a believable supply schedule and true decentralization at the protocol level. A crypto reserves confuse the issue and values Bitcoin in public. Bitcoiner principals should be pushed for an all-or-nothing approach; Either bitcoin, or no reserve.
Bitcoin does not need the government
I wonder what early Libertarian Bitcoiners from 2012-16 will think of 2025 bitcoiners who are pushing the government to restore the value of their coins. Beyond the confusing ideological evolution that the Bitcoin community has undergone, another point remains. Bitcoin is one of the best-playing investments in history, which has monetized from nothing in 2009/10 to trillion dollars at the aggregate value in 2025. It has done all this without government support, and, in fact, in many cases, despite excessive hate from powerful nations. A crypto reserve will change Bitcoin from an apolitical government playing, subject to Washington political cycles. Bitcoiners have never been their wagon in the government, and they should never start now.
It will turn to the Americans against the bitcoiners
Only a small portion (somewhere between 5-20%) of Americans owns Bitcoin, and even fewer ownership of other cryptoassets. Many Bitcoiners are extremely rich because of their historical coin investments and so on. At a time when the government spending was under the microscope, using the taxpayer’s dollar – regardless of mechanically they were distributed – to strengthen the price of bitcoin and other cryptoassets were not popular with politics. The suggested amnesty of Biden’s study’s loan was addressed with a huge resistance, despite the potential applying for 43 million lenders. Bitcoiners are a smaller bunch and even less than need financial support from the government. This policy will undoubtedly cause an unnecessary backlash in a broader society against the crypto community.
Seems to be interested in self
It is no secret that Trump and his cabinet and inner circle have inhabitants of different cryptoassets. Trump himself launched, or associated with: an NFT project built on ETH, more than a Memecoin built in Solana, and, of course, the World Liberty Financial holding a set of crypto assets. What we need from Trump is a reasonable crypto policy, and based on his appointments to Treasury, Commerce, SEC, CFTC, OCC and others, he seems to be delivering it.
However, the use of government resources to directly increase the amount of coins Trump (and many of his inner circles) hold a sour taste. Most of us in the crypto industry simply ask for reasonable policies and fair road policies so that we can do business with US Trump suggests more than this and using the taxpayer’s dollar to think of coins themselves, who potentially enrich himself and his comrades.
In Trump’s critics, it appears corrupt. It also makes the residue of pro-Crypto policymaking and regulatory efforts that seem to be interested in itself, rather than letting it stand on its own as good policy. A future administration can choose to throw the baby with the bathwater, reversing all the development of the US in crypto. Having a reserve gives the future efforts of regressive an easy moral justification.
