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Below is a breakdown exploring the implications of a Bitcoin Strategic Reserve (SBR) for America. This newsletter provides investors with context on Bitcoin, macro economics and its potential impact on the United States.

Why the U.S. needs a Bitcoin Reserve

Investing is a tough business. Markets are always moving, interest rates are shifting and your portfolio returns are all over the place. For most investors, managing their retirement portfolio comes with enough headaches. That’s why low-cost index funds were invented, to reduce the stress of investing while achieving market returns.

However, the U.S. government does not have that luxury. In fact, the U.S. government and Treasury have a multi-trillion balance sheet. There are countless securities held by the Government with different time horizons. For example, these securities may include short-term and long-term treasuries, mortgage-backed securities, and even student loans.

Now you might realize but the U.S. government is the largest business in America. It has well over 2 million employees, tax revenues and significant expenses. In fact, the country is running at a significant deficit because we have been on quite the spending spree since 2019 (that’s why Elon Musk was brought in - to cut government spending).

Like any business, the government’s goal is to monetize assets.

So today I will provide some context on why the U.S. government has decided to launch a Bitcoin Strategic Reserve, and what it means for Americans.

The Trump Administration in Action

For the past two months, President Trump has taken massive action across the Government. For context, President Trump already completed 83 Executive Orders (EOs) in 2025. This is significant when compared to previous Administrations that completed the following EOs: 220 in Trump’s first term, 276 in Obama’s two terms, 162 in Biden’s one term.

One of President Trump’s campaign promises was to make the U.S. the global hub for cryptocurrency. This entailed reducing crypto regulations and creating a crypto stockpile or reserve for the U.S. Last week he fulfilled this promise and established the Bitcoin Strategic Reserve. This initiative was led by David Sacks, who is the Administration’s czar of Crypto and A.I. More on him later.

The banning of crypto & Bitcoin

The U.S. is not the only country that regulated crypto with iron fist. China has banned crypto 19 times since 2010. Yet they still own the largest stockpile.

The SEC has unbanked countless founders in the crypto industry. I, myself, couldn’t speak of Bitcoin, only blockchain technologies for years. The industry had been shadow banned for years. But not any more.

You see, crypto’s strengths and weaknesses are the same: pseudonymity and anonymity.

It’s tough for regulators to know what is going on, when everything is masked behind a wallet address. But if you are familiar with blockchain technologies, then you know there are ways to verify transactions on-chain. In fact, agencies like the FBI and CIA have used blockchain explorers to identify criminal activity because of the transparent nature of crypto transactions.

The biggest problem with banning crypto for years was that we were offshoring all of the innovation. Even the fraud. This is why the FTX scandal happened in the Bahamas, not in the U.S. Even though FTX had a U.S. entity and raised capital from investors all over the world. The Trump Administration is working to onshore crypto so we can regulations.

Who is heading the U.S. Government’s Crypto Initiative?

Before diving into the details of the Bitcoin Strategic Reserve, let’s talk about David Sacks. He is the White House A.I. and Crypto Czar. Below is a quick breakdown of his experience.

To begin, Sacks was the first product leader and later became COO of PayPal when it first launched in 1999. He worked with Elon Musk and Peter Thiel, and was a key member to build the first payment products on the internet. He is also a successful venture capitalist and sold his own startup, Yammer, to Microsoft for $1.2 in 2012. He is an experienced technologist.

As the Czar, he focused on advancing the country’s mission to become more tech-centric at tech speed. It’s time for the U.S. government to upgrade its core operating system.

Given Sacks’ experience, he is assigned with answering the tough questions when it comes to technology such as:

• Is crypto a security?
• How can we ensure A.I. safety?

Watch this interview with Sacks discussing the Bitcoin Reserve in greater detail. He went in great depth on his podcast as well.

​David Sacks on Bitcoin Reserve, Auditing Crypto, AI​

What is a Bitcoin Strategic Reserve (SBR)?

A Bitcoin Strategic Reserve would involve the U.S. government acquiring and holding a significant quantity of Bitcoin as part of its national reserves. The Bitcoin would be stored in secure digital vaults, held for decades, and potentially used to address fiscal challenges. Unlike traditional reserves like oil or gold, Bitcoin is a decentralized, digital asset with a fixed supply. It is also governed by a transparent blockchain, making it a unique candidate for a modern reserve strategy.

The concept draws parallels to historical precedents. The U.S. has long maintained strategic reserves of critical commodities. Gold backed the dollar until 1971, and even oil since the 1970s to mitigate supply shocks. Bitcoin, often dubbed “digital gold,” offers a deflationary counterpoint to fiat currencies, which can be endlessly printed.

Economic Implications: Debt, Inflation, and Diversification

One of the most compelling arguments for an SBR is its potential to address America’s ballooning national debt. I think it’s an interesting idea but not a compelling one. Optimism from every investment comes from an asset's continued appreciation. Bitcoin is up now but has had past drawdowns of 50-70% before. Even with a long-term horizon, such fluctuations could leave taxpayers exposed if the government were forced to sell at a loss during a crisis.

Diversification might be the largest benefit. Today the U.S. holds vast reserves of gold, oil, and Treasury securities, but these are tied to traditional systems vulnerable to geopolitical risks or economic shifts (e.g., BRICS nations challenging dollar dominance). Bitcoin, operating outside state control, could reduce reliance on any single asset class. Yet, this raises a paradox: if Bitcoin’s value lies in its independence, government accumulation might signal a lack of faith in the dollar, potentially weakening its status as the world’s reserve currency.

Geopolitical Ramifications: Power and Perception

Geopolitically, an SBR could enhance America’s strategic position—or backfire spectacularly.

As mentioned earlier, China banned crypto countless times. Yet they still owned the largest stockpile. I think more foreign countries will now look into owning Bitcoin or creating their own digital currency in the near future. Fortunately the U.S. has written creating its own centralized digital currency. The U.S. Dollar is enough for us.

By holding a significant Bitcoin stake, the U.S. could influence its adoption as a global settlement layer. Which will help us maintain financial leadership as cryptocurrencies gain traction. Trump has framed this as a way to “dominate the global Bitcoin market,” echoing Cold War-era resource races.

The transparency of Bitcoin’s blockchain offers a unique advantage: public auditing of reserves could bolster trust in the government. This is a contrast to opaque gold vaults held at Fort Knox. Yet, this openness also exposes vulnerabilities—cyberattacks on digital wallets remain a threat, and a breach could destabilize confidence more than a gold heist.

Technological and Cultural Shifts Coming from Crypto

An SBR would signal America’s embrace of blockchain technology, reinforcing its role as an innovator. Remember, the U.S. commercialized the internet in the 1990s, sparking an economic boom. This helped the Clinton Administration. A similar approach to crypto could drive growth in A.I., finance, and energy (Bitcoin mining’s energy demands could spur grid modernization).

Culturally, it aligns with American ideals of self-reliance and skepticism of centralized authority. Bitcoin’s ethos resonates with a nation founded on checks and balances. But while also alienating those who see crypto as a speculative bubble or a tool for illicit activity. Either way, I think it is a cultural shift the country needs to pursue. We are a country of risk-takers.

Risks include Volatility, Purpose, and Trust

I think the most popular critics argue that Bitcoin lacks the systemic importance of oil or gold. It doesn’t power factories or back currencies in a tangible way. Bitcoin’s value can be speculative, and rooted in belief rather than utility. There’s some truth to this but the utility of blockchain technology has become more apparent every year.

Volatility remains the elephant in the room. While long-term returns are impressive, short-term crashes could force the government into a weak-handed position—selling low after buying high. Hedging strategies exist, but they complicate the simplicity of a “hold forever” plan. Security risks, from hacking to regulatory missteps, add further uncertainty.

Perhaps the greatest risk is to trust. The dollar’s dominance rests on faith in U.S. institutions; an SBR might signal desperation, especially if paired with fiscal irresponsibility. For Bitcoin to bridge fractured economic systems, as some predict, it needs infrastructure (scalability, compliance). All of this might be a few years away. Bitcoin may play a strategic role in the economy but it might be too early for governments. Only time will tell.

What Risks or Concerns do we need to be weary of?

For starters, a lot of people are pumping their own bags. If you watch the White House Digital Assets Summit video, most of the participants have exposure to crypto.

​President Trump Delivers Remarks at the White House Digital Assets Summit​

The only exception might be David Sacks. He has made it clear several times on X, that he divested all of his crypto investments before taking a role in the office. Selling $85 million was a big deal for him, and might cost him 2-3x in gains over the next decade. It was a tough decision but the right one for Sacks.

However, Trump, Saylor, Brian Armstrong and many others have exposure to crypto. Fortunately Bitcoin is the most decentralized asset in the world, so there’s little chance that participants will move the market on their own.

Investors and regulators should take conflicts of interest very seriously. Sometimes when there is no conflict, there is no interest. If you are looking to invest in the industry, double down on your research here.

Conclusion: A Bold Bet on an Uncertain Future

Now this is an evolving topic. The crypto markets are open 24/7 and the environment is always shifting. There are good and bad actors across the industry. Always do your own research and buyer beware. Crypto is volatile. Read multiple viewpoints and do your own due diligence when looking at any technology investment.

Here’s what I think of the crypto reserve. It is an essential first step to protect digital asset rights for Americans. All Americans. Not only the investors.

If you look at the world today, it is split up into three parts: Capitalism, Socialism and Communism. America, Europe and China/Russia. Only America and China compete at scale, but America continues to dominate when it comes to GDP per capita. This happens because we allow economic freedoms to drive growth in the economy. Anyone can start a business, open a bank account, and invest in the free market.

For America, the SBR is less about Bitcoin’s immediate utility and more about what it symbolizes: a willingness to adapt, to challenge the status quo, and to bet on a future where digital assets matter. Whether that bet pays off will shape not just the nation’s balance sheet, but its identity in the 21st century.

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