Over $36 trillion of U.S. debt, while the U.S. GDP is projected to increase by $1.42 trillion in 2024! The interest that must be paid on the debt exceeds $1 trillion, and in the future, it will surely be insolvent. How will this be paid?
The hegemonic position of the U.S. dollar has gradually declined over the past decade. Asian countries have introduced the BRICS, and small countries like El Salvador have no better choice than to anchor BTC as their legal currency, while the EU also has a unified currency settlement system—the Euro.
How long can the influence of the 'dollar tide' last in the future? The Fed's interest rate hikes over the past four years have caused a serious decline in the global economy, with national currencies of countries like Japan, South Korea, Sri Lanka, Brazil, Argentina, and Nigeria depreciating by more than 25%, with some exceeding 40%, and Sri Lanka even going bankrupt. This can be said to be the most severe crisis in history. So how will the global economic landscape change in the future, and what will dominate globally?
Trump will officially take over the presidency on January 20, 2025. What will guide the next four years to lead America back to the position of the world leader? To reinforce its core position in global finance? Based on his current policies, it is certainly: the cryptocurrency governance model!
Next, let's analyze in detail how this nearly 70-year-old man is officially starting his cryptocurrency governance model through his 'eight-step plan'.
Step one: To serve as a national strategic reserve currency.
To determine the status of Bitcoin.
During the election campaign, there was a strong advocacy for supporting cryptocurrencies, and after successfully being elected on November 6, 2024, many promises were quickly fulfilled.
The first thing: To use BTC as the national strategic reserve currency, which holds value equivalent to gold. In the past 50 years of the global financial system, only gold and the U.S. dollar have served as strategic reserve currencies.
The second major task: To enable traditional large banks in the U.S. to accept Bitcoin as collateral for lending dollars. To understand the importance of this, consider what assets can be used as collateral for loans in your village, aside from real estate and cars.
The third major task: The Treasury will purchase over 1 million BTC in the next five years. This is not just talk, but taking concrete action. It is far better to directly act and buy 1 million BTC. This leading role is in place, and even if all Bitcoins are mined in the future, the actual circulation will likely be less than 18 million, with many permanently lost. Thus, 1 million BTC would account for about 5.6%.
Step two: Through the (Bitcoin Rights Act).
To ensure from a legal perspective!
I provided a detailed analysis of this content in a previous article (Bitcoin Rights Act) that was formally passed, along with my personal insights.
The passage of the act actually has very significant implications.
1. To ensure the safety of assets for all users entering the market.
2. Legal compliance can bring more funding, which can push the price of BTC to greater heights. This is what I previously mentioned; a series of measures are likely to push the price of BTC close to $250,000 in this round.
3. This is also an important step in the historical development of Bitcoin, indirectly giving a hint to many countries that previously opposed it. If I have started legalizing it, how can you still dare to prohibit it? Morocco is a typical example; it prohibited it six years ago and just started legalizing it a few days ago.
Step three: The dismissal and replacement of the SEC chairman.
Dismiss the current SEC chairman: Trump has repeatedly expressed dissatisfaction with the current SEC chairman Gary Gensler. He criticized Gensler's regulatory policies on the crypto industry as too strict, stating that such an enforcement attitude stifles America's potential for innovation in cryptocurrency technology and harms the country’s global competitiveness.
For a long time, the SEC, led by Gary Gensler, has taken severe legal actions against several cryptocurrency exchanges and projects, classifying crypto assets as securities and thus enforcing strict regulations.
Additionally, in a tweet on November 10, Trump hinted that he might bypass the traditional Senate confirmation process to directly appoint the next SEC chairman via a recess appointment. He also mentioned collaborating with potential Senate majority leaders to promote recess appointments to 'immediately' fill important vacancies. According to the U.S. Constitution, recess appointments allow the president to make temporary appointments while the Senate is in recess, valid until the end of the next Senate session.
