Is The USA Buying 1 MILLION Bitcoin? (Bitcoin Strategic Reserve) #Finance

hey everybody welcome back to whiteboard Finance my name is Marco and I’m here to help you master your money and build your wealth in today’s CashNews.co

we’re going to be talking about the potential United States Bitcoin strategic Reserve our country has oil reserves they have food reserves they have a bunch of different types of reserves but this is something that’s gaining traction I think it’s a huge asymmetric opportunity if

it does come to fruition so we’re going to be talking about this from a perspective of a way out of national Debt but we’re also going to be talking about what it’s going to do to the price of Bitcoin so what are strategic National reserves to begin with so there

a stockpile of certain materials that are held back from normal use by governments for particular strategy or to help deal with unexpected events so if you take a look at this picture off to the right uh you may have to watch this on something bigger than a mobile device uh but you you have here

the year established so from the 1930s we had a strategic green Reserve then a strategic cheese Reserve in 1933 us gold reserves in 1934 strategic uh petroleum reserves in 197 4 strategic National stockpile of 1999 this is from the Department of Health and Human Services and then finally will we

see a strategic Bitcoin Reserve so just to give you some perspective the Federal Reserve also holds various Assets such as gold certificates foreign currencies and US Treasury certificates so this would be something like almost um you’ll see here later in the

CashNews.co it’s almost a play of how to reduce national Debt but also how to actually strengthen the dollar and make it more legitimate than it already is so what is a strategic Bitcoin Reserve so in July 2024 uh right here is a screenshot from Senator ls’s uh proposed

Bill uh that bill is called the Bitcoin act excuse me act not bill yet uh so what that stands for is boosting innovation technology and competitiveness through optimized investment Nationwide uh basically what they’re saying is they’re going to have a a Bitcoin purchase program

we’re not going to buy more than 200,000 Bitcoins per year over a 5-year period uh but trying to get to a total acquisition of 1 million Bitcoin so let that sink in I think right now the United States just from certain uh seizures and illegal activity they have about 200,000 Bitcoin right now

currently held um if you look at a country like Germany for example they just auctioned off or sold their Bitcoin at Market um this may actually be the start of something getting closer to a million Bitcoins If This Were to go through so all Bitcoin acquired to this program should be held for a

minimum of 20 years and no Bitcoin may be sold or disposed of for any purpose other than paying off the Federal Debt that’s kind of what this uh CashNews.co is going to be about and we’re getting here in a second so if we go to her screenshots this was November 6th this

was after um Donald Trump became president-elect so she’s saying that we are going to build a strategic Bitcoin reserve the future is bright this say 6.6 million impressions with 83,000 likes and 18,000 retweets that’s huge for Twitter or for x uh so Anthony scaramucci uh this was about

a day ago he said time to focus on something the market is isn’t completely understanding by the middle of next year if Cynthia lumus lumus has her way the us will have a strategic Bitcoin reserve it will force other central banks to do the same so what you guys need to understand is Game

Theory um and I’ll talk about a couple of my uh tweets here later in the CashNews.co but if you have two countries which we’ll talk about later in the CashNews.co I don’t want to jump outside of the presentation uh but basically say you have two competing countries let’s say

that’s uh United States and Iran United States and China United States and Russia for example if any of these countries start adding Bitcoin to their Balance Sheet before the United States does they’re already in at a potentially lower cost basis and they’re

already ahead of the game which is going to force other people to join after the fact right it’s Game Theory um so there’s a much longer and better explanation of Game Theory but just for the sake of this presentation I want to get to the Debt payoff portion of this

CashNews.co so let’s talk about the the situation first and foremost so how would a strategic Bitcoin Reserve help the United States so right now the US federal Debt has surpassed 35 trillion it’s actually just um it’s almost at 36 trillion at the time of this

recording uh and it’s increasing and accelerating Pace last year alone the interest expense on federal Debt you can see this right here this black line uh starting with 2020 exceeded $1 trillion making it the second largest budget item next to Social Security so what we

don’t what we can’t comprehend as humans with their small lizard brains is we can’t visualize a million dollars let alone a billion how much bigger a billion is than a million let alone a trillion okay and there’s time analogies that maybe I’ll put on the screen to

help you understand it better trillion is an unbelievably big number and that’s just the interest okay that’s just the interest not the principle so the US government has consistently spent more than it has raised with Taxes for over 20 years a deficit that now stands

at 1.6 trillion annually the Congressional budget office estimates that the federal deficit will continue to grow over the coming decade with no end in sight so if you take a look at the national Debt Clock we’re almost there we’re almost at 36 trillion but let’s

talk about some traditional or non-bitcoin ways to fix the Debt crisis right and does it even need to be fixed if you talk to people that believe in mmt uh modern monetary Theory they just say hey the government’s Balance Sheet is not like a household

Balance Sheet right we don’t have uh Income and expenses even though in a way they do they have tax receipts they have government spending of course but basically they don’t treat it the same way as you and I treat our household Balance

Sheet right oh we make five grand a month what can we spend on Disney World right uh that kind of a thing they believe that you can just keep printing printing Printing and raise Taxes and that’ll take care of it right well that leads to Inflation

news flash um so let’s talk about the non-bitcoin ways to fix the Debt crisis you have austerity which is being austere lowering expenditures or raising Taxes to balance the budget however this is unpopular and not something that a politician is typically

going to run on you have mandatory expenses that we can’t necessarily uh decrease you have social security you have Medicare you have uh funding Foreign Wars which seems to be the soup dour over the past three years um you have use it or lose it budgets start at a high from a previous year so

basically if anyone here has worked in government um you try and use up your budget as much as possible that way it actually stays the same if not increases for the next year otherwise it’s going to get cut um it’s basically a way of saying hey you didn’t use up your full budget

here is 80% of what you had last year so use it or lose it perpetuates this and then tax increases which can reduce economic activity and then it’s obviously not popular you’re never going to see a PO a politician go hey you know what I’m running on increasing your

Taxes you know it’s only the opposite that people run on um and then money printing right we talked about modern monetary Theory uh and Inflation so basically what they say is hey you know I’m a government I’m going to rely on the effects of

Inflation to erode away the value of my national Debt right so say total Inflation over the next 20 years is 1,000% but the US Debt Grows by let’s say 100% let’s just say it doubles the real value of the federal

Debt would be reduced by 80% right Inflation is a th000 you’re raising it 100 right so the absolute size of the government Debt decreases so that’s the big uh thesis behind like mmt and inflating away the Debt right

we’ve talked a lot about this especially in whiteboard Finance University if you haven’t joined whiteboard #1a73e8; text-decoration: none;">Finance University I highly suggest you do that um so how can Bitcoin actually help solve the US Debt crisis Okay so so if you look at this uh chart provided by river uh you can see the yearly average growth rates M2 money supply since 2014

increased 6.3% uh the S&P 500 increased about 10.1% uh and then you have uh Bitcoin increasing at 63 a half% right so if you invest in Assets that appreciate faster than the Inflation that’s how you can maybe cut into this Debt uh Bitcoin

is less than 1% the market cap of stocks Bonds and Real Estate and then it’s Game Theory again we talked about this being one the early adopters be in El Salvador uh be in Argentina that kind of a thing so how Bitcoin can help solve the US

Debt crisis so this chart uh these numbers are a little bit outdated I just took the screenshot because it was easier than making one myself so thank you River uh but basically 1 million Bitcoin according to Senator lumus would cost about 75 to 76 billion uh at the time of this

recording it would have to appreciate 467 x uh in order to pay off the Debt but you don’t have to necessarily do that you have a low downside of acquiring Bitcoin so the acquisition of a million Bitcoin for strategic Reserve would be a relatively small investment for the

United States look at how much money we’ve sent overseas just to fund proxy wars right so at today’s prices acquiring 200,000 Bitcoin per year it would amount to less than. 2% of the annual federal budget right that’s nothing it’s a drop in the bucket so also this ensures

our world Reserve currency status okay it ensures the future of the US dollar um regardless of your view on the US dollar it’s the best interest um that the US government has to ensure the dominance of the dollar as the global Reserve currency we talk about US dollar dominance on this channel

all the time right everyone wants and needs dollars until there’s something better right say the bricks come along with a commodity based currency and everyone starts going to that right and they say hey dollar that’s just some madeup funny money you can’t even pay off your tax

receipts or your interest on your Debt right so again this could just be uh low downside also World Reserve currency opportunity and then it’s a long-term opportunity right Bitcoin is still in its infancy um it’s highly likely after establishing a strategic Bitcoin

reserve the US and many other developed countries are going to follow suit okay this would put United States in a place of long-term position of strength um and that’s why I think it’s important and then also we need to continue our Innovative Supremacy okay so United States

there’s a ton of people that still come here to this day for the opportunity of the low be of Entrepreneurship Innovation not so much red tape as you have in like the European Union for example so let’s continue so what is this going to do to uh impact Bitcoin itself so obviously

Bitcoin there’s only 21 million ever with an estimated 2 to three million being lost uh so let’s just call it you know 18 19 million Bitcoin that’s uh available ever uh and then you have a fixed Supply with almost infinite demand if this were to happen uh you have strategic

alignment with regulation strategic alignment with the government and then also control so Bitcoin is highly decentralized um so I’m kind of jumping around here but these are all positives that would actually make Bitcoin friendly to governments if the United States were to adopt it as

opposed to being this you know um anarchic Rebel you know I’m I’m My Own Bank kind of money right so uh take a look at this this is a tweet from British hoddle um people have opinions about him but this is just a decent tweet in general basically um micro strategy is going to purchase

about $20 million of Bitcoin a day that has nothing to do with the US government strategic Reserve but if they were to put $200,000 Bitcoin a year by order in this market that would result to somewhere around at least a floor of $173,000 Bitcoin uh and then after the next having you’re

looking at right around 346 okay we have not even begun yet okay so as always what are my thoughts about all this uh if you’ve been watching this channel uh I’ve been talking about Bitcoin in this channel since December 2017 it’s one of the most divisive topics on my channel

because my channel is kind of like it’s a interesting audience it’s it’s car buyers it’s Dave Ramsey it’s it’s a bunch it’s a bunch of stuff right and then it’s people that understand Bitcoin it’s people that don’t understand you know

money understand stuff like that people that do understand money so when I talk about something like Bitcoin you know if it goes outside the scope of someone’s understanding or kind of like their worldview they automatically dismiss it so um there’s a bunch of resources that I can point

you to towards if you want to learn more about Bitcoin but my point is as a as an American citizen I was born and raised in the United States um but I also see perspectives from other parts of the world the United States is kind of how do I say it it’s still great from an opportunity

standpoint but when it comes to youth getting ahead or at least being equivalent to their parents or at least Baby Boomers for example they feel like they’re making a losing BET right they feel like I can’t afford a house I can’t afford a girlfriend I can’t afford kids I

can’t afford anything what’s the point let me go on my VR headset and just go play CashNews.co games all day right so if we come up with something that’s more of like a strategic Reserve at least go towards something that’s somewhat of a sound money and if you guys

don’t understand the properties of money Bitcoin is the best form of money ever created in human history it’s not debatable it has all the properties of sound money um significantly better than Fiat in my opinion but you kind of have to understand the Fiat game and play it right so my

point to this whole ramble is that I think that doing something as I don’t say drastic but this is no different than buying a better version of gold okay so it’s no big deal for central banks all around the world to buy gold why wouldn’t they buy Bitcoin it’s just a better

form of gold it’s gold for 2024 and Beyond um you know gold you can’t go to Costco and shave off some gold at the register and say oh can I buy this milk with my gold dust particles right uh you can do that with Bitcoin Bitcoin is divisible to 100 million right so at the end of the day

I just think Bitcoin is a better form of money it’s a better form of uh storage of value if you understand how Bitcoin works you understand how it’s mined how it comes into existence how it’s hashed how it’s basically um created or mined if you will brought into existence is

what I’m trying to say and it’s just a much better form of someone at the FED clicking a mouse button saying hey we just expanded the money supply by 80% the last four years enjoy your grandkids are screwed uh with Inflation so with all this being said um I’m a

big proponent of Bitcoin I’ve been bu Bitcoin since 2017 um but it’s only about 177% of my Net Worth why isn’t it more um because it is still relatively young and there has been a lot of uh like headwinds it’s always pronounced dead you know regulation this

this and this but with the presidency or the president-elect and also the House and Senate being completely um dominated by one party um that’s not to say the people inside that party are pro bitcoiners but it is to say that legislation like this if it were to go through there is an increase

of percentage of chance that this happens right is it going to happen who the hell knows maybe maybe not but if it does this is there’s no better time from a risk return asymmetric bet standpoint to buy Bitcoin than right now unless you got in years ago right when it was trading in the you

know double digits triple digits quadruple digits right so hopefully you got value out of this CashNews.co send this to someone that you’re potentially trying to orange pill um because if this Bitcoin strategic Reserve happens other countries are jumping out on board and that’s not

debatable it’s it’s going to happen right um the tweet that I or the analogy that I like to use is if you guys remember that CashNews.co of the dude at the Rave just kind of dancing on the hillside by himself um you know it took like 30 40 seconds for someone else to join him and then

when the second guy joined then everyone at the concert joined um it was interesting so that that country’s already been El Salvador El Salvador was the first to take it seriously and continue to buy and have Bitcoin strategically in their Balance Sheets um and they’re

have been other countries that have tried it but not to the extent that El Salvador has tried it um but once that second genuine um country joins that’s when everyone else is going to join the party thank you so much uh check out whiteboard

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance University if you haven’t it’s in the link in the description below and have a prosperous day