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In the last episode of “Bitcoin’s political hour”, a weekly podcast Produced by Bitcoin Policy Institute (BPI) for non -profit, members of the organization explained how only one political decision of the US government could catapult the price of bitcoin to new extraordinary heights.
According to the executive director Matthew Pines, the world monetary framework has largely remained the same since 1973, when the global financial system was removed from a stallion. “When you think of the monetary system in which we are currently living in,” he said, “there has been since 1973 and has gone through a number of crises and developments, but the fundamental structure of it has really not changed.” He then pointed out that because nations like China have become industrial, military and financial heavy goods vehicles, the stability of this long -standing dollar system has been under the challenge in a way that has been not observed for decades.
The head of the policy that Zach Shapiro added that concerns about loss of confidence in the US dollar and his reserve assets – the security of the US Treasury – have fueled discussions on alternatives. “If you want to talk about what could be a reserve asset,” he said, “gold is an obvious candidate.” He added that since the United States has froze the reserves of the Treasury of Russia last year, “there has been a feeling of central banks around the world than treasury bills become less a neutral reserve asset … and therefore foreign governments have encroached gold.” This could erase a track for Bitcoin to replace or complete the historic role of Gold, especially if the Trump administration announces its first purchase of Bitcoin.
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When asked for the long time length political idea to “mark gold on the market” And using the product to buy bitcoin, Shapiro explained that the price of America’s legislative gold – still set by law at around $ 42 per ounce, even if the global markets exchange gold above $ 3,200 – could generate what it called a “great surplus on Treasury books that we could then spend on things”. He mentioned that if these procedures were directed to Bitcoin, “it would be a unique tip that adds almost a dollars billion to our toll on paper. But why do we do that and why do we think now?”
Pines underlined the world implications. “Gold certificates are a secondary intrigue in this broader competitive strategic dynamic,” he said, referring to continuous commercial and technological friction restrictions between the United States and China. “When you have the great powers of the world decide that they will increase the bet against each other, you will see movements in many areas: prices, export controls, monetary systems and yes, monetary assets such as gold and bitcoin.”
Discussion then turned into a white house Executive decree published in March This has formalized the Bitcoin reserve strategic reserve and asked agencies to carry out an audit of Bitcoin, with results due to the president’s working group on digital assets. Pines noted that “he literally said that bitcoin is digital gold, is in our strategic interest and that we need a Bitcoin strategic reserve”, even if, in his words, “people outside the American government first wondered if it was real or simply a campaign promise”.
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Shapiro confirmed that the White House indeed demanded that each agency identifies the digital assets it currently has of confiscation or other means. “By status, they had thirty days to do so,” he said. “But this report goes to the secretary of the Treasury and the president’s working group, not necessarily the public.”
Although the Order of the White House has also urged budgetary methods to acquire new bitcoin, no agency has yet explained how they intend to do so. Pines and Shapiro said that the debates of the internal government, as well as the confusion on what “neutral budgetary” means, could slow down the implementation. “This cannot have an impact on other elements of the budget line,” said Shapiro. “But the prices, for example, are not something that directly costs the money of American taxpayers, and this is a way that has been launched to collect Bitcoin funds. Selling assets already in the government’s assessment is another. It is so neutral budget.”
If the Trump administration is buying Bitcoin, the price involvement could be massive, according to the BPI. Shapiro said: “If the United States announces that we buy a million bitcoin, it’s just a global seismic shock. I think it’s really a big problem. I think the price of Bitcoin goes through the roof. I think we will probably go very quickly to something like a million dollars by Bitcoin.”
However, the geopolitics could be even greater, added Shapiro: “Then you have to wait and see what type of dominoes falls from this. What are the effects of the second order of Bitcoin, just monetized on a faster trajectory than I think that many people plan. The first is a kind of reaction of reactions from other United States reactions from the United States […] I suspect that bitcoin is strongly monetized and that it would quickly have a negative impact on the kind of long -term perspectives for gold. »»
At the time of the press, BTC exchanged $ 83,594.
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