Let's get it clear. Irrespective of the exchange rate, Bitcoin is global self-custodial, sovereign, trustless money. So I cannot really imagine a government as entrenched in the Fiat regime as the US (with the privilege to print the global reserve currency, set benchmark interest rates on bond yields, almost controlling the Swift, a massive fraction of global trade via the regulatory frameworks and petrodollar) will be really Bitcoin friendly with full consciousness.
So when the current administration pays some sort of lip service to Bitcoin, I am inclined to think they do it because of some combination of the following reasons
- some of them are too dense to even understand Bitcoin
- some see crypto (which, in their mind, is synonymous with Bitcoin) as an industry that can create jobs, pay taxes, fund political campaigns (what's not to love about these?)
- some of them think this crypto friendliness can be a Trojan horse to get the world accustomed to USDT and eventual nationalisation of Tether (as a company) to convert those USDT to CBDC, further entrenching the exorbitant privilege
But what I do not understand, is the apparent drama about the so called Strategic Bitcoin Reserve (SBR). Every week, someone from the administration will make a statement saying things like they will buy BTC to build it, or they will not buy, but not sell either or they will stay budget neutral. Then they throw around different numbers (of BTC they own), further convoluting the picture.
And, most disgustingly, all these announcements end up moving the market, as the bunch of hedge fund analysts and portfolio managers running crypto desks chase the news to frontrun everyone else.
I have no issue against the hedge funds as such, but what's the goal of the administration? Do those people just blabber off random crap like whatever comes to their mind, not thinking about it, and the traders move like a dog chasing its tail?
Or is there a method in the madness as in, the administration is trying to create some kind of narrative by conflicting messaging (we will buy, or not buy, we have X amount of BTC, oh, sorry we have only Y amount) or basically help insiders trade the volatility?
The funniest thing is, the Reddit Buttcoin sub creates the narrative that Bitcoiners are begging/lobbying the government to buy Bitcoin with tax money (which they see as a bail out to establish a price floor). Why would I, as a Bitcoiner, want the government to buy Bitcoin? Yet, it seems that is what the narrative says.
Weird times!
