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 if I were a betting mangold news and we kind of all are in our own ways you kind of have to be you got to place your bets somewhere I would bet that eventually all these other digital assets get sold and it makes a lot of sense to use the proceeds to buy Bitcoin hello gold silver family Alan Hibert here with another video and today I want to talk about what I think is the most important economic announcement in the United States in the last 50 years the creation of a strategic Bitcoin Reserve now this happened about a week

and a half two weeks ago but this is so important and it's going to be one of the most important topics on everybody's radar for the next few years so I want to bring you the most important details and tell you what that fund includes what it doesn't include some of the speculation around it and why it is so important for you to understand so let's dive in we are starting with a tweet that came out I think the day or yeah just a few minutes ago just a few minutes after president Trump signed

that executive order to establish a strategic Bitcoin reserve the reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal and civil asset forfeiture proceedings this means it will not cost ta taxpayers a dime very important it is estimated that the US government owns about 200,000 Bitcoin however there has never been a complete audit the executive order directs a full accounting of the federal government's digital asset Holdings the US will not

sell any Bitcoin deposited into the reserve it will be kept as a store of value the reserve is like a digital Fort Knox for cryptocurrency often called digital gold okay and there's a lot more of this tweet we're not going to go into it what I want to do is actually read parts of the executive order that are most important and then show a little bit of commentary about what some other people are saying about this because it is so so so important first of all I want to go back to a tweet actually from

November of last year this is when Trump first Flo the idea of a strategic Bitcoin Reserve out into the public and Jack MERS a bitcoiner says the US establishing a Bitcoin strategic Reserve as proposed by Senator uh Cynthia lumus would rank among the most pivotal events in our economic history I agree empowering the people and restoring trust in our economic policies by aligning them with Innovation progress and ethical Integrity so yeah I actually replied to his Tweet back in November and I said he's not wrong and just as a

brief example I gave some of the important economic developments that happened in the United States in 1933 it became illegal for American citizens to own gold I mean that was absolutely terrible this is a negative announcement for the people the following year the dollar was devalued 41% overnight impoverishing a lot of people 1971 the gold was removed the gold backing was removed from the dollar that's terrible 1975 okay citizens can legally own gold again that's I guess better than nothing

2008 tax dollars were given to bail out the banks and set a very dangerous precedent going forward and then 2024 or turns out it's 2025 now the US gets gets a national Bitcoin strategic Reserve that's actually a good thing that's a good thing all these other developments were bad so this is a big shift uh I would encourage everyone to pay attention to this going forward and I would really encourage everyone to clarify your assumptions around Bitcoin what it is and what it isn't it's so so

so report so back in 1984 friedrick a hyek said I don't believe we shall ever have a good money again before we take the thing out of the hands of government that is we can't take it violently out of the hands of government all we can do is by some Sly roundabout way introduce something that they can't stop I think Bitcoin is that thing it was some Sly roundabout way of introducing something that governments can't stop and not only can they not stop it but it is so powerful it has

such a strong gravity with such strong incentives that governments have to adopt it they have to use it themselves and when I say use it I mean hold it because that's what you do with money you don't spend money to use it you spend money when you stop using it so yes I do think uh I do think Bitcoin is that thing so here is the executive order you guys can find this online pretty easily but I'm actually going to read off of some screenshots that I have because I have some some highlights so

let's start with section one the background Bitcoin is the original cryptocurrency the Bitcoin protocol permanently caps the total supply of Bitcoin at 21 million coins and has never been hacked as a result of its scarcity and security Bitcoin is often referred to as digital gold digital gold so already right off the bat comparing Bitcoin to Gold okay I think in order to appreciate what's going on here you have to not only read what's written but you have to read what isn't written so you

have to imagine what could they have said in this executive order well they could have said oh Bitcoin is a cuttingedge technology and blockchain is very promising so we want to have the first major blockchain but they didn't say that right this isn't about blockchain this isn't about this isn't about Innovation or entrepreneurship this is about digital gold digital gold very important because there is a fixed supply of Bitcoin there is a strategic advantage to being among the first

Nations to create a strategic Bitcoin reserve the United States government currently holds a significant amount of Bitcoin but has not implemented a policy to maximize bitcoin's strategic position as a unique store of value in the Global Financial system okay unique store of value this is a store of value right they could have said Bitcoin is going to be the currency of the future and one day Americans everywhere will use it to buy a cup of coffee no they did not say that they said store of value store of

value not medium of exchange very important just as it is in our country's interest to thought thoughtfully manage National ownership and control of any other resource our nation must harness not limit the power of digital assets for our prosperity okay section two so what is the actual policy here what's going on it is the policy of the United States to establish a strategic Bitcoin Reserve okay number one so we're establishing a strategic Bitcoin Reserve number two it is further the policy of

the United States to establish a United States dig United States digital asset stockpile okay that serve as a secure account for orderly and strategic management of the United States other digital asset Holdings okay so there's actually this is actually two things one for Bitcoin one for other digital assets keep that in mind because we're going to talk about that distinction as we go section three how do we create it and administer it the Secretary of the Treasury s shall establish an office to administer and

maintain control of custodial accounts collectively known as the Strategic Bitcoin Reserve how is it capitalized well with all the Bitcoin held by the department of the treasury that was finally forfeited as part of criminal or civil asset for forfeiture proceedings or ins satisfaction of any civil money penalty imposed by any executive department or agency okay it's a long sentence there's a lot going on so far the Bitcoins to start the fund are coming from criminals basically anyone who committed a crime and stole some

Bitcoin okay now the government has it and that's going to be the seed capital for the fund moving on down government Bitcoin deposited into the Strategic Bitcoin Reserve shall not be sold shall not be sold this is important they're holding the Bitcoin there's no plan to sell it at a profit or sell it to use the proceeds for something else that's important all right remember that because it's in stark contrast to what we're about to see the other um fund here the digital asset stock pile

that's capitalized a simil excuse me a similar way with assets taken from criminals the Secretary of the Treasury shall determine strategies for responsible stewardship okay it doesn't say the other digital assets shall not be sold right it only says that for Bitcoin for the other digital assets the secretary shall determine strategies for responsible stewardship which could mean selling them okay keep that in mind the Secretary of the Treasury and the Secretary of Commerce shall develop

strategies for acquiring additional government Bitcoin okay so they're going to acquire more Bitcoin provided that such strategies are budget neutral and do not impose incremental costs on us taxpayers I think that's a very responsible way of doing it budget neutral don't use any taxpayer money fantastic however the United States government shall not acquire additional stockpile assets other than ones taken from criminals so we're planning to get more Bitcoin but we're not we're definitely not taking

any other assets that aren't Bitcoin that's pretty important to understand why is the government making such a distinction here it's because one is a store of value and the other they're not so again we'll come back to that section four accounting very simple here within 30 days of the date of this order the head of each agency shall provide the secretary blah blah blah a full accounting of all government digital Assets in their possession So within 30 days and we're already maybe

10 or 12 or something days past uh we should get the accounting we should know how much Bitcoin how much of all the other coins they have and probably what their plans are for acquiring more Bitcoin you know what are those Revenue neutral ways going to be so some key takeaways here there's two funds right the Strategic Bitcoin reserve and the US digital asset stockpile and when you put them side by side and think about what they are how they're capitalized what the plan is going forward you see just

how different Bitcoin is from everything else in the eyes of the US government okay this isn't some you know 14-year-old on Twitter saying like bitcoin's digital gold right this is the US government okay so what is the raison Detra the reason for being why does this even exist well it is quote unquote digital gold Bitcoin digital gold strategic advantage to being first and a unique store of value for the digital asset stockpile they didn't give a reason and unless I missed it but I I

read it a couple times I didn't see a reason for why they even have a digital asset stockpile I've heard Trump say that it's to be you know pro-american business so he you know he tweeted about some of the coins that were founded by American companies but that's that's not in the language here so I don't really know why we would want to have a digital asset digital asset stockpile I don't know why it's there so anyways how is it going to be seated or capitalized well

all Bitcoin that's basically coming from criminals and then all digital assets other than Bitcoin coming from criminals okay within the next 30 days we should get a full accounting of all asss sets of both types and what is the plan for acquiring more of each well in the case of Bitcoin we shall develop strategies for acquiring additional Bitcoin that are budget neutral and do not impose incremental costs on us taxpayers for all the other digital assets shall not acquire additional assets other than

from criminals and in terms of the disposition the exit strategy right how does this all end in the case of Bitcoin they shall not be sold in the cas of all the other digital assets we shall determine strategies for responsible stewardship and if I were a betting man and we kind of all are in our own ways you kind of have to be you got to place your bets somewhere I would bet that eventually all these other digital assets get sold and it makes a lot of sense to use the proceeds to buy Bitcoin I think that is

just going to happen I don't know how soon quite frankly it doesn't matter to me I think it's it's inevitable that whatever all these other coins are they will be sold and the proceeds will be a Reven Revenue neutral way that won't cost a taxpayer a scent of acquiring more Bitcoin for the country again when do it happen I don't know but I think it's inevitable so all of this Bitcoin versus everything else can be summarized with this vend diagram that I first saw years ago it is so helpful in my opinion

there is a myth that most people have in their brains and I was one of these people many years ago that Fiat is its own animal and separate from Fiat is the world of cryptocurrencies a subset of which is Bitcoin right Bitcoin is one of the many cryptocurrencies and those are all different from Fiat and this is how people think about all these different assets I think that is very misleading very misleading much closer to the truth a better mental model is the one on the right where Fiat is its own thing and

all these other cryptocurrencies are a subset of Fiat they are all currencies with a central issuer they all have a set jurisdiction or network in which you can use them there's a central group that manages the rules or the codes and enforces them or creates exceptions and those are all distinct from Bitcoin Bitcoin is a separate thing it is decentralized we all collectively own it and can use the network no one can tell you what you can and can't do on the network your ability to use the

network is the same as the US government or any large player I think this is a much better way of thinking about these assets Bitcoin is different from everything else so what are the implications here what are people saying about the creation of the Strategic Bitcoin Reserve well Deutsche Bank report says us reserves makes Bitcoin a quote unquote hard Reserve asset hard Reserve asset it could change International standards for Global reserves it could yeah I think it it it is for sure it's

happening the game theory is playing out it is inevitable the US has to adopt Bitcoin eventually it turns out they are every other country has to adopt Bitcoin eventually it's just a question of who does it in what order so I think it's inevitable Ryan rasmason says the endgame was never the US government buys all the world's Bitcoin no however a US strategic Bitcoin Reserve means other countries will have to buy Bitcoin yes true wealth managers have no excuse not to buy Bitcoin they had an excuse right

they thought Bitcoin could be outlawed um you know there might not be support from governments and so forth there's no excuse anymore financial institutions have no excuse pensions endowments have no excuse the fear of the US selling is gone the US will likely buy more and within 30 days we should see a a plan to acquire more Bitcoin the likelihood of States buying just went up the probability the government Outlaws Bitcoin is definitively zero I would say for the next few decades it's probably zero but just like the US

government outlawed gold um in the 1930s they could Outlaw Bitcoin again at some point um but I think for the next little while it the probability is zero this changes everything zoom out I agree I agree I want to leave you guys with this image right here uh this is power a graph of power over time and you can see how long these time scales are about 250 years to gain and lose power we've got Dutch power British power us power and Bitcoin power and Thomas Farah says you get the opportunity to front

run the Bitcoin strategic Reserve once do not this up thank you guys for watching see you in the next video