Recently, former U.S. Treasury Secretary Summers bluntly stated that the idea of the government establishing a national Bitcoin reserve is "crazy!" This statement has caused quite a stir—after all, Trump's ally Musk is pushing for a plan to cut federal spending, even suggesting that the government hold onto its existing 200,000 Bitcoins in hopes that their value will appreciate over time to reduce national debt. Is this a genius plan or a reckless gamble?
Summers scoffed at this. He believes that Bitcoin cannot be compared to strategic reserves like oil and gold. The government exerts effort to maintain reserves of oil and gold because they have practical uses. But what about hoarding Bitcoin? He directly questioned: "Why should the government support a pile of Bitcoin by accumulating useless inventory?" Such statements are thought-provoking.
Indeed, the government has been in a dilemma between spending cuts and welfare reductions, especially since U.S. federal spending is closely tied to defense and elderly welfare, making it no easy task to cut spending. Summers believes that changing this situation requires the government to either have the political courage to tell the public to reduce entitlements or to raise taxes, and he leans towards the latter—direct tax increases.
This dilemma is not unique to the U.S.; governments around the world are grappling with fiscal issues: the French government collapsed due to budget problems, and the German coalition government also fell apart over spending disputes. Summers lamented that there is always a huge gap between society's pursuit of rights and the reality of paying for those rights. With an aging population, skyrocketing medical costs, and defense spending that cannot be reduced—this forces us to make choices, either reducing welfare or increasing taxes. But as Summers said, "It is difficult for leaders to convince everyone of this," which is the root of today's global conflicts.
In the face of such a situation, how can one quickly understand market dynamics and make rational decisions? In this regard, Mlion, an AI investment research assistant focused on web3, is quite useful (for experience, please visit: 👉mlion.ai). It not only integrates real-time news but also provides in-depth news summaries and unique insights through AI, helping you quickly grasp market dynamics. Moreover, its AI price predictions and data dashboards vividly display market sentiment and trends, making it a valuable assistant for decision-making in the crypto space.
What do you think about the topic of establishing a national Bitcoin reserve? Feel free to leave a comment, and let's discuss it together!
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