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What is an American-based cryptocurrency?
This is so ridiculous!!! that takes an actual bill, mushroom penis man can’t just snap his nubby fingers and make that happen. Can’t pass that via exec order. 0 chance of passing congress
Do they consider Bitcoin American based??
Expect a selloff
The president does not have the ability to change the tax code. It would have to be done via legislation.
Only federally though I’m sure, state tax still will be a thing 🙁
Tanvi Ratna
“3/3/2025 ©Tanvi Ratna @tanvi_ratna
https://x.com/tanvi_ratna/status/1896468788180124081
Why does the US Crypto Strategic Reserve hold assets beyond Bitcoin?
By Tanvi Ratna
What is the purpose of the reserve? Under what scenarios would it activate?
I view this more from the lens of economics, geopolitics and statecraft, than a crypto industry PoV centered on market dynamics. As a policy strategist, I’ve been in the weeds of crypto policy debates for years globally. This is the world’s first strategic reserve on crypto, which makes the rationale of it very important.
There are five possible purposes for which a country might set up a strategic reserve on any asset. Let’s look into how the crypto reserve might match up against these different purposes.
Possible purpose 1: Economic Stabilization
Bitcoin’s notorious volatility makes it an ideal candidate for economic stabilization efforts. Just as the Strategic Petroleum Reserve (SPR) is deployed to stabilize oil markets, the Crypto Reserve could intervene during extreme market swings. For instance, a >30% crash in Bitcoin’s price (e.g., from $94,164 to $65,000) could threaten U.S.-based miners like Marathon Digital or institutional investors reliant on crypto ETFs. Timely purchases by the reserve could restore confidence and prevent broader financial contagion. Conversely, during speculative bubbles—such as a >50% price surge—the reserve could sell BTC to cool overheated markets.
This use case is highly feasible. Bitcoin’s thin liquidity relative to traditional assets means that even modest interventions (e.g., buying or selling 1% of supply) can significantly influence prices.
Possible purpose 2: Geopolitical Leverage and a new tool in economic warfare
The global nature of Bitcoin offers unique opportunities—and risks—in geopolitical strategy. Rival nations like China and Russia have accumulated significant Bitcoin reserves, reportedly using them to evade sanctions or hedge against dollar dominance. The U.S. Crypto Reserve could counter such moves by flooding markets with BTC to devalue adversaries’ holdings or disrupt their financial strategies.
While this scenario is plausible, its execution would be fraught with challenges. A large-scale sell-off could destabilize global crypto markets, harming U.S.-based firms and undermining confidence in Bitcoin itself. Nonetheless, as a tool of economic warfare, the reserve provides a credible deterrent against hostile actions like large-scale BTC dumps by rival nations.
Possible purpose 3: Fiscal and Debt hedging
With national debt exceeding $35 trillion and growing concerns about dollar erosion, Bitcoin offers an intriguing but speculative hedge for U.S. fiscal policy. Unlike gold—which remains a cornerstone of central bank reserves—Bitcoin’s volatility limits its role as a safe haven asset. However, its long-term appreciation potential (e.g., projections of $250,000/BTC by 2029) makes it an attractive addition to a diversified reserve portfolio.
For this use case to materialize, Bitcoin would need to demonstrate sustained growth without major crashes—a tall order given its historical price swings. Even so, the reserve’s current holdings (~0.5% of U.S. debt) are too small to make a meaningful impact on fiscal stability unless scaled significantly.
Possible purpose 4: Market Influence and Industry Support
Perhaps the most actionable roles for the Crypto Reserve lie in market influence and domestic industry support. By strategically buying or selling BTC, the reserve could shape market dynamics to favor U.S.-based miners and exchanges while deterring speculative excesses that undermine institutional adoption.
This aligns closely with President Trump’s stated goal of making the United States the “Crypto Capital of the World.” Supporting altcoin ecosystems like Solana and Cardano would then make sense as well, if the aim is to strengthen every major US-based blockchain stack in a tech race against other nations.
Possible purpose 5: National Security and Deterrence
While Bitcoin’s borderless nature might seem advantageous for national security purposes—such as funding covert operations or responding to ransomware attacks—its traceability on public blockchains limits its utility in these scenarios. Similarly, using the reserve as a deterrent against economic warfare depends heavily on perception; rivals must believe that the U.S. has both the capacity and willingness to act decisively in crypto markets.
In conclusion, the U.S. Crypto Reserve represents a first and ambitious experiment in leveraging digital assets for national strategy. Its most immediate applications—economic stabilization, market influence, and industry support—are well-aligned with current market conditions and America’s crypto dominance (40% global hash rate). Geopolitical leverage and fiscal hedging remain plausible but require significant scaling beyond 200,000 BTC to rival traditional reserves like gold.”
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