$Bitcoin (BTC.CC)$ fking trump

10baggerbamm : it's kind of best if he just says nothing because the expectations are every time something is going to come out and the reality is this was just a repeat for the most part of what he said during the crypto summit.
everybody wants to hear is the government is going to be taking 10% of the money we receive in the form of tariffs and we will be buying Bitcoin on an ongoing perpetual basis

Flaming Deals OP 10baggerbamm : yea he should keep his damn mouth shut. last time he posted abt the strategic reserves for crypto then next day crasheddd. same thing happened with trump coin and today. he is rly pumping and dumping cryoto which is so bad, it caused my solana and eth to be down 60% since jan. rly bad

Kevin Matte 10baggerbamm : I liked your statement about using part of the tariff revenue to buy BTC. I had fun analyzing the situation if it is possible, with AI and turned it into a text.

Is it possible and feasible?

Theoretically, a government could use part of its revenue (such as tariffs) to buy Bitcoin. Several countries and companies already hold BTC as a strategic asset (e.g., El Salvador has made Bitcoin legal tender and regularly purchases it through its sovereign fund). However, for the United States, such an approach would be extremely difficult to implement for several reasons.

Current Reality: Why is it unlikely for the United States?

1. Politics and Regulation

Currently, the SEC (Securities and Exchange Commission) and other U.S. regulators have a skeptical stance toward Bitcoin.

The government's position on cryptocurrencies remains uncertain. While the launch of spot Bitcoin ETFs is a step forward, direct government purchases would be a radical shift.

If Trump, as president, wanted to implement such a policy, he would need legislative approval and a clear legal framework, which would take time.

2. Economic and Monetary Consequences

Buying Bitcoin with public funds could be perceived as an attack on the U.S. dollar.

The Federal Reserve (Fed) and the Treasury Department could oppose it, as it could weaken the dollar’s status as the world’s reserve currency.

Bitcoin is a highly volatile asset. If the government invested a significant portion of its revenue in BTC and its price crashed, it would create a major financial risk.

3. Use of Tariff Revenues

Tariffs are generally used to reduce trade deficits, protect domestic industries, or fund public expenditures.

In 2023, the United States collected approximately $80 billion in tariff revenue.

Allocating 10% to Bitcoin would mean about $8 billion per year, which could have a bullish impact on the market but would also spark political and economic controversies.

What Could Happen in the Medium Term?

The idea that the U.S. government could use part of its tariff revenues to buy Bitcoin is an interesting concept, but it raises several economic, political, and monetary concerns. Below is a detailed analysis of possible scenarios.
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Kevin Matte 10baggerbamm : Optimistic Scenario: A Gradual Opening Toward Bitcoin

In this scenario, the Trump administration, already supportive of financial sovereignty and reducing dependence on the traditional banking system, could ease Bitcoin regulations.

Key possible actions include:

Relaxing Regulatory Restrictions

The SEC and CFTC (Commodity Futures Trading Commission) could adopt a more lenient stance on cryptocurrencies.

A clearer and more favorable framework for Bitcoin ETFs, encouraging adoption by institutional investors.

Simplifying rules for companies wishing to hold Bitcoin as treasury reserves.

Indirect Bitcoin Adoption by the Government

The possibility of introducing Bitcoin reserves in certain government agencies like the Treasury Department or even the Federal Reserve as a strategic asset.

The creation of a sovereign wealth fund or a pilot program to experiment with Bitcoin in public finance management.

Encouraging Private Sector Initiatives

Facilitating Bitcoin adoption by large U.S. companies by removing tax and accounting barriers.

Supporting Bitcoin investment initiatives in pension funds, hedge funds, and commercial banks.

This scenario would be cautious and gradual, aiming to promote Bitcoin adoption without making a radical shift.

Realistic Scenario: Limited Experiments and Targeted Testing

In a more measured approach, the government could consider testing certain Bitcoin applications before fully committing.

Potential measures could include:

Pilot Programs in Certain States

Some pro-Bitcoin U.S. states like Texas, Florida, or Wyoming could test Bitcoin integration in their reserves.

Implementing pilot programs allowing states to hold part of their local revenues in Bitcoin.

Limited Bitcoin Use by Federal Agencies

Experimenting with Bitcoin as a payment method for government services (e.g., taxes, fees, administrative charges).

Testing Bitcoin integration into specific public investment funds or strategic reserves.

Using Bitcoin for Targeted Funding

Creating an innovation fund partially financed in Bitcoin to support U.S. blockchain startups.

Limited Bitcoin purchases by public institutions, on an experimental basis, without full-scale adoption.

In this scenario, the government does not fully adopt Bitcoin, but explores its potential benefits through targeted initiatives.

Improbable Scenario: A Massive and Perpetual Bitcoin Purchase Using Tariff Revenues

This scenario, while attractive to Bitcoin supporters, is very unlikely in the short and medium term as it would represent a radical shift in U.S. monetary policy.

The consequences of such a move would be significant and controversial:

Political and Geopolitical Risks

A massive Bitcoin adoption by the U.S. would challenge the dominance of the U.S. dollar as the world’s reserve currency.

This could lead to tensions with the Federal Reserve and other major financial institutions, who might see it as a threat to their monetary control.

Allied and rival nations (EU, China, IMF, etc.) could view this as a major break from the existing financial system.

Economic and Budgetary Impact

Tariff revenues are traditionally used to fund public programs (infrastructure, local industries, military, etc.).

Allocating 10% of tariff revenue to Bitcoin would divert billions of dollars from these programs.

Bitcoin remains a volatile asset, meaning major losses could occur if the market crashed.

Monetary Consequences

Government Bitcoin purchases could lead to a significant price increase, but also introduce risks of speculation and instability.

The Federal Reserve would likely oppose such a decision, as it would reduce its influence over monetary policy.

This move could trigger a global reaction, accelerating a race toward Bitcoin adoption as an alternative to fiat currencies.

In summary, a massive and continuous Bitcoin purchase using tariff revenues is highly unrealistic, as it would conflict with fundamental principles of U.S. monetary policy.

Conclusion: What Is the Most Likely Path?

In the medium term, the most realistic scenario is that the government will not directly buy Bitcoin, but facilitate its adoption through clearer regulation and gradual experiments.

If Trump pushes for Bitcoin integration into U.S. economic policy, it would happen step by step, testing indirect applications first before considering a broader adoption.

The idea of a massive Bitcoin purchase funded by tariff revenues remains very appealing to Bitcoin advocates, but it is highly unlikely in the short and medium term, as it would challenge the fundamental structure of the U.S. financial system.

END.

10baggerbamm Kevin Matte : I've been saying for literally 2 months now the president has the authority to have Bitcoin paid at the Port of entry to the customs agents in the form of Bitcoin it then is turned over to the treasury where it is put into the strategic reserve. this can be done with an executive order and then in time it can be made a law through Congress that way it'll prevent God forbid the next administration who's a Democrat from tapping borrowing throwing an IOU or stealing the Bitcoin

so 10% it could be 100% and it can be done with an executive order

Flaming Deals OP Kevin Matte : so bullish?

Kevin Matte Flaming Deals OP : i bought leveraged ethereum instead