US Strategic Bitcoin Reserve FOMO Is Being Horribly Oversold

Let’s get one thing out of the way – the United States already owns more Bitcoin than any government in the world.

While this data is correctYou wouldn’t exactly know this from the obscene amounts of FOMO generated by industry lobbyists on social media.

On X, BTC Inc CEO David Bailey has been pushing for an executive order by President Donald Trump that would put this into effect. On the first daywhile Dennis Porter, founder of the Satoshi Action Fund, has been working to drum up enthusiasm nationwide, pledging to incentivize states to buy… Before the federal government As a kind of patriotic act.

Look, I’m in the Bitcoin Strategic Reserve. It is true that the United States needs a long-term plan for dealing with the dollar, one that will (most likely) make it abandon its status as a global reserve currency.

Yes, the United States should actively promote the Bitcoin market and industry. But this downward approach could not be more inconsistent with all reason.

No other governments are buying Bitcoin, nor are there any (public) plans to do so. The second largest country with Bitcoin appears to be China, which has officially banned its use.

Among the countries that are actively buying Bitcoin with the intention of – Bhutan It holds just over 10,000 BTC, while El Salvador is still stuck at around 6,000 BTC. Neither will buy more bitcoin than the US government already has — and neither owns a widely popular money printer.

Full stop – even if the US government didn’t buy Bitcoin for ten years, its stock would be large. Sure, you might argue that it’s about sending a message, showing leadership in the world, but there are many ways in which this can be done without wasting political capital.

Is a strategic reserve more important than regulation that would actually ease barriers to our industry? Would this enable companies to grow sovereign use of the currency?

And let’s not forget the terrible tax laws that make Bitcoin holders think twice before using Bitcoin for purchases.

All of this is to say that advocates of the Bitcoin Strategic Reserve should not over-throw their hands — a lot can be gained by simply convincing the US government to stop selling the Bitcoin it already owns, and there are arguably even greater gains to be made, or at least much worse laws to erase them. .

Would it be great if the US government started buying Bitcoin? certainly. The industry has political capital to leverage, but let’s use it to spread Bitcoin adoption, not just pump our bags.

This article is a takes. The opinions expressed are entirely those of the author and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.