Donald Trump has just given the green light of cryptocurrencies that will be part of the Strategic cryptocurrency reserve in the US. His arrival involves the failure of the foundations on which Bitcoin and the rest of cryptocurrencies were created: a free “decentralized” economy of the power of governments.
The strategic cryptocurrency reserve. In July 2024, Wyoming Senator Cynthia Lummis presented A bill for the creation of a “Bitcoins Strategic Reserve”. This reserve would be generated from the differentials between the Federal Reserve and the Treasury of the United States, investing that surplus in Bitcoin or other cryptocurrencies to maintain stable value. Lummis’s first proposal was to take control of 1 million bitcoins, 5% of the existing total.
The objective of obtaining a large volume of cryptocurrencies is that, a state state or entity (in this case USA, although it can be extrapolated to any other country) Acquire and keep A significant volume of cryptocurrencies. This volume will serve as alternative financial support in situations of economic crisis, geopolitical tensions or steep fluctuations in the value of traditional goods and assets.
The contradiction. The creation of this reserve makes the states a safeguard of stability in the price of cryptocurrencies due to the predictability of their public investment plans, or executioners of your investors When they decide to get rid of their enormous positions. Trump already showed his intention to take control of Bitcoin using this formula, As reported Reuters.
In short, as gigantic market whalesstates would take control of the value of crypts as they do with gold, or with the Intervention in the Fiat currency. They only have to change their behavior with respect to that currency and its value will grow or devalue. When Trump has given him his support, the price of cryptocurrencies has grownwhen the Biden administration retired it, They collapsed.
The problem: cryptocurrencies do not exist. The opposite voices To the measure approved by Donald Trump to create a national cryptocurrency reserve, they point out that, unlike other reserves, cryptocurrencies are a purely speculative instrument in which its value depends on what the buyer is willing to pay for him.
States use their national strategic reserves (oil, gas, gold, grain or vaccines) for shock the impact of increasing of those assets before their Supply shortagegeopolitical crisis, etc.
That is, they have an impact on the supplies and services of their citizens. Instead, a cryptocurrency reserve would only benefit those who have investments in chiptomyned, regardless of whether they live in the US, China or Mozambique, such and as they point out from Financial Times. “The background would give Bitcoin speculators the security that when the crisis arrives, the State will use this fund to rescue them,” said Ramaa Vasudevan, professor of Economics at the State University of Colorado to Inventopedia.
The US decides the winners. With the creation of this US strategic reserve, the supposed freedom of cryptocurrencies has been conditioned by the choice of certain currencies, which ensure their stability and future growth, compared to others that do not have that support, As you remember in CNBC.
Adam Blumberg, co -founder and Vice President of Advice Services of Enclave Group pointed out the enormous contradiction that exists in a government (especially that of a superpower such as the US) Control an asset Decentralized
“In the next elections a new administration could arrive that needs to find money to pay debts or social security, and could sell the reservation (cryptocurrencies) were not created for that and puts too much power in the hands of the federal government, which is always in a cycle of four or even two years,” said the expert.
End of the dream of freedom. As Bloomberg pointed out In one of its publishersthe origin of cryptocurrencies was to allow people to make economic transactions without centralized intermediaries such as banks or governments. With the creation of this or other state reserves, what we are are are active and controlled by the governments and agencies of those who tried to flee that invest in them the money of all citizens (they want or not invest it).
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Image | Flickr (Gage Skidmore), Unspash (Art Rachen)
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