Is the US on the cusp of doing something that will change the game in global finance and leave the UK scrambling to catch-up? No more of this incremental change nonsense, folks—we’re looking at a possible tectonic shift. The "Bitcoin Act," championed by figures like Senator Cynthia Lummis, could trigger a financial earthquake that reshapes the global order. This isn’t really about Bitcoin, it’s about power.
US Bitcoin Grab A Power Move?
He thinks this can be done once the US government agrees to buy 1 million of BTC. Let's unpack the implications. The Act plans to fund this acquisition by revaluing gold reserves. Now, that's where it gets interesting.
Now, picture the US actually holding all that Bitcoin. Not simply for personal gain, but as a competitive advantage. Forget gold bars gathering dust in vaults. We’re no longer addressing a national commodity, we’re discussing a digital commodity, borderless and censorship-resistant, that could disrupt the international trade and currency reserves.
UK Playing Catch-Up Already?
Until this point, the Bank of England has been quite tentative with regards to digital assets. Should the US decide to fully embrace Bitcoin, that caution might very well morph into a panic. Will the pound suffer? Will British businesses be caught flat-footed?
It’s high time the UK woke up and smelt the digital cappuccino. We’re not just discussing a new fiscal arrangement — we’re discussing a new fiscal order. A future in which Bitcoin is not only the most desired speculative asset, but a central component of our geopolitical leverage.
Bitcoin > Gold A New Paradigm?
For millennia, gold was the only go-to safe haven. In a digital age, is that still the case? Bitcoin offers a modern, efficient alternative. It’s verifiable, portable, and tamper-proof by any one actor.
| Feature | Gold | Bitcoin |
|---|---|---|
| Scarcity | Relatively Scarce | Hard Capped at 21 Million |
| Transferability | Difficult, Costly | Easy, Fast, Borderless |
| Verifiability | Complex, Requires Expertise | Transparent, Cryptographically Secured |
| Divisibility | Limited | Highly Divisible |
| Censorship Res. | Susceptible to Government Control | Resistant to Censorship |
Consider this: Eric Trump, not exactly known for his financial conservatism, sees Bitcoin hitting $1 million due to its censorship resistance, limited supply, and liquidity. In addition to ART, analysts such as Lyn Alden and Bernstein are forecasting at least 6 digit long-term price targets. Are they all crazy? Or are they just picking up on a trend that the traditional banking establishment is failing to recognize?
The United States may be able to leverage its Bitcoin holdings to exert soft power, thus developing a new, digital type of economic leverage. Consider the possible implications of good trade terms to all countries that accept Bitcoin, or dollar titans escaping US sanctions through Bitcoin. This is not solely a discussion of wealth generation, but rather one of power projection in the 21st century.
The interest rate risk of the US federal government’s balance sheet stands to benefit tremendously. Many private sector actors, like Bitcoin miners and Bitcoin corporations, are seeing extremely fast rates of wealth generation. This would be a huge and controversial change in global trade and power dynamics, bolstering the U.S.’s economic dominance. It’s a roll of the dice, to be sure, but one with incredibly transformative pay-offs.
Is the United Kingdom prepared for a future in which Bitcoin has become one of the key geopolitical weapons?
