The Crypto Plot Against America's Gold Reserves

National Treasure: Bitcoin Edition

by Ryan Cooper November 26, 2024

The crypto “industry” was one of the biggest spenders in the 2024 election. It practically single-handedly bought a U.S. Senate seat in Ohio, turfing out labor’s most reliable senator, Sherrod Brown, with $40 million in advertising. And it convinced Donald Trump to make a 180 with a big sack of campaign contributions. Back in 2021, Trump said crypto was a “scam,” but now he has his own coin, his media site is in discussions to buy a crypto exchange, and he’s fully bought into the claims that the industry is overregulated.

So now that crypto has bought great political influence, it’s time to cash in. How might this happen? The basic idea is to turn the American government into the biggest crypto bag-holder of all time. If the plan goes through, hundreds of billions of dollars of public assets will be spent or leveraged to buy a million Bitcoins, allowing the tiny minority of Bitcoin moguls to finally cash out their holdings into real money. It would be one of the biggest upward transfers of wealth in world history.

At the Financial Times, Toby Nangle explains the various plans. One idea is to loot the Exchange Stabilization Fund, which is largely under the president’s control, and has about $41 billion in net value. A much larger plan has been formally introduced by crypto shill Sen. Cynthia Lummis (R-WY). It’s called the (sigh) Boosting Innovation, Technology, and Competitiveness Through Optimized Investment Nationwide (BITCOIN) Act, and it identifies several public assets that might be drained. One idea is to reduce the capital reserve requirements at the Federal Reserve from $6.8 billion to $2.4 billion; another is to skim off the Fed’s $6 billion in annual money-printing profits.

So why on earth would buccaneering crypto people want the government scooping up a million Bitcoins—or about 5 percent of all that exist? The reason is obvious: so paper Bitcoin billionaires can cash out their holdings into real money without tanking the market. https://prospect.org/power/2024-11-26-crypto-plot-against-americas-gold-reserves/

Always listen to the smartest and the most ethical guy in the room.

Joseph Stiglitz: Bitcoin ought to be outlawed
Nov 30, 2017
https://www.weforum.org/stories/2017/11/joseph-stiglitz-bitcoin-ought-to-be-outlawed/