Bitcoin for the US: A Budget-Friendly Plan
President Donald Trump has just signed an order to create a special Bitcoin reserve for the United States. This is a big step for cryptocurrency, but it also raises a question: how will the government get more Bitcoin without asking taxpayers for more money? The answer is something called “budget-neutral strategies.” Let’s find out what these are and what they might mean.
What are Budget-Neutral Strategies?
Budget-neutral strategies are ways to get more Bitcoin without making U.S. citizens pay more taxes. These strategies use things the government already has or can get without extra cost. Here are two main ideas:
- Revaluing Gold Reserves: The U.S. has a lot of gold, but it’s valued at a price much lower than what it’s really worth. If the government revalues this gold to its true market price, it could get billions of dollars to buy Bitcoin[3][5].
- Using Seized Bitcoin: The U.S. government has taken Bitcoin from criminals. These Bitcoins can be used to start the country’s Bitcoin reserve without costing taxpayers anything[3].
Other Ideas to Consider
There are other ways to get Bitcoin without extra cost:
- Mining Bitcoin: The U.S. could use computers in federal data centers to mine Bitcoin, like Bhutan does[1].
- Issuing Bonds: The government could sell special bonds just for buying Bitcoin, like some companies do[1].
What Could Happen?
These plans have big effects. They could make Bitcoin’s value go up and show that it’s a good way to save money. But they might also face problems, especially if they involve selling or changing the value of things like gold[1][3].
A New Step for Bitcoin
In short, the U.S. government wants to get more Bitcoin without asking taxpayers for more money. By using things it already has, it can start a special Bitcoin reserve. This is a new step for Bitcoin, and it will surely change how people see cryptocurrency in the U.S. and around the world.
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Sources:
– The Crypto Basic
– Quorum Report
– Clark Hill
– Westurner’s GitHub Page
– CoinTelegraph