For Bitcoin this week is of course dominated by the Strategic Bitcoin Reserve of the United States. In the first instance it seemed to be the most boring implementation of the Bitcoin reserve, namely one in which the US no longer buys Bitcoin and stays with the seized coins.
But that is not the whole story, because an interesting gray area has been created in the terms of the decree. And why would you choose that gray area if you are not going to buy more Bitcoin?
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The gray area in the Bitcoin reserve of Trump
The Trump team of course understands that certain parts of society can become rebellious if it had bought Bitcoin tax money for billions of dollars.
With the current status of Bitcoin as a financial asset, which is not yet at the level of gold, you cannot sell it to purchase more BTC with tax pennies. For that reason, it was undoubtedly chosen for the possibility of making “budget -neutral” purchases.
Budget neutral means that it does not cost extra money under the line, and that provides a few options for collecting more Bitcoin.
That was confirmed by David Sacks, the “crypto tsar” of Trump’s government. Eleanor Terrett wrote that “the difference” between the Bitcoin reserve and the reserve with other crypto coins is that the government will actively look for ways to collect extra bitcoin (in a budget-neutral way), while that does not apply to the altcoin reserve.
David Sacks responded with “accurate.”
What is the definition of budget neutral?
Michael Saylor immediately responded under a post by David Sacks with the words: “I have a few budget -neutral strategies to collect more Bitcoin.”
He is of course the chairman of the board of Strategy, the former micro strategy, which since August 2020 collected more than 500,000 bitcoin. With his company he is known for the creative ways in which they are constantly able to buy more Bitcoin.
There are also many bitcoiners who have already made some suggestions. For example, publishing Bitcoin bonds or selling gold. That seems unlikely, but who had dared to predict that Donald Trump would create a strategic Bitcoin reserve in 2025?
In addition, it would be possible to buy 39 billion dollars from Bitcoin via the Exchange Stabilization Fund. According to people, it would also be possible to sell Special Drawing Rights (SDRS) of the IMF for 160 billion dollars, with which Bitcoin can then be purchased without hurting the taxpayer.
Well, so there seem to be some options. In the coming period we will see if the US will seriously start using it.
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Source: https://newsbit.nl/trump-geeft-overheid-vs-toestemming-om-meer-bitcoin-te-kopen/
