Odaily Planet Daily News - U.S. Senator Cynthia Lummis's previously proposed plan to fund Bitcoin purchases partially relies on the large gold heritage owned by the United States—these gold reserves were left over from the era when the U.S. dollar was pegged to precious metals, allowing dollar holders to exchange dollars for gold at a fixed price. Although the dollar has not been redeemable for gold since the early 1970s, the Treasury and the Federal Reserve still hold about 8,100 metric tons of gold. The government values this gold at $42 per ounce, far below the current market price of $2,650. Cynthia Lummis hopes the Treasury will reassess this gold at the current market price and use the paper profits to fund Bitcoin purchases without raising taxes or issuing new government bonds. However, critics point out that this operation is not a free lunch; it would require the Federal Reserve to cover the difference between the gold certificates held by the Treasury and the new valuation by combining money printing and asset sales. Monetary economist George Selgin argues that this operation amounts to a 'backdoor loan' for the U.S. government, bypassing the normal appropriation process to avoid new debt and covering up the truth. Lummis's bill relies heavily on gilded magic, with George Selgin stating, 'What better way to win public support than to make people believe this plan won’t cost a dime?' (Jin Shi)

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