$BTC
US Treasury hits a new high; after the dreamlike linkage of crypto and traditional finance, can 1 million BTC digest 36 trillion US debt?
Today I saw a piece of news: Howard Lutnick, the Commerce Secretary nominated by President-elect Trump, is in talks with Tether, the world's largest stablecoin operator, to launch a project "providing dollar loans to customers using Bitcoin as collateral," with initial funding of 2 billion dollars.
Many people previously thought that Trump was more about expressing a "crypto-friendly attitude" to win the support of crypto voters rather than actually establishing a Bitcoin strategic reserve!
But soon, this situation turned around—Trump's clear statements at the Nashville Bitcoin conference at the end of July slapped many market participants in the face.
So, the start of the "Bitcoin Strategic Reserve": a campaign declaration or a governance plan?
Regardless, since Trump took office until now, the price of BTC has risen from the 60s to the 90s, fully demonstrating that US institutions are making decisions that hold more sway over the market!
There is a saying: Bitcoin is not the goal but the means; monetizing debt is the real way.
The question is whether buying 5% of Bitcoin as a strategic reserve this year can play a substantial role in addressing 36 trillion of US debt?
First, let's look at its feasibility: in the early years, gold; during the industrial era, oil; currently, aside from these two, it seems that the US is not leveraging anything else besides BTC!
Moreover, the US is not simply hoarding Bitcoin; controlling a larger quantity of Bitcoin indeed struggles to provide a short-term quick relief for the US's staggering 36 trillion national debt. After all, as the saying goes, "distant water cannot quench a near thirst," and "slow money cannot cure an urgent illness."
However, once Bitcoin is incorporated into considerations at the "national fiscal level," and subsequently "monetizing debt," i.e., using gradually rising cryptocurrencies to phase out medium to long-term debts! In a gradual approach, it may become "a good remedy."
The continuity of the bull market next year could also elevate BTC's market value to another level!
