all right so imagine the us government stockpiling bitcoin the same way it does with gold it sounds absolutely insane but that's exactly what just happened president donald trump just signed an executive order for the creation of a us strategic bitcoin reserve think of this like a gold reserve but instead of fort knox we get bitcoin the white house also announced a us digital stockpile of other cryptos that will be the first of its kind of digital assets to be held by the federal government there's even the possibility of zero capital gains taxes for all us-based
crypto projects but all of this raises a lot of questions too like why is the government doing this how is it going to work how many coins is the government going to buy which ones and should the government even be investing into bitcoin at all and how high will bitcoin go there's a lot of confusion and controversy about all of this with opinions from every side and i've got my own thoughts that i want to share with you so let me break this all down and help explain one of the most historic moves of our
lifetime so let's get into it hi my name is andre jick hope you're doing well come for the finance and stay for the bitcoin part of this video was sponsored by coinbase but more about them later by now i'm sure you know exactly what the crypto reserve is it can be compared to other reserves the us has like oil gold rare earth minerals and even cheese yes the united states has 1.4 billion pounds of cheese stored underground in the caves of missouri now why does the us actually want to do this and to really understand
that you have to look at us history because 75% of the united states was bought with about $40 million as the first settlers got to the us they expanded westward and along the way they bought louisiana they bought texas they bought california and they purchased alaska it was physical property today we call that real estate and those purchases added trillions and trillions of dollars to the us economy but fast forward several hundred years later and now we have the digital frontier in this digital space the money is being moved from the physical world and into
the digital world not all at once but where is all the money going to right now it's going to the digital economy powered by bitcoin as the reserve asset so the united states is essentially planting a flag in cyerspace before anyone else can get to it on a big scale that's the big picture way of thinking about this but strategically there are also a couple reasons why the us wants to do this one it's hedging against inflation and economic uncertainty people who want this reserve say bitcoin could protect the us if the dollar's value goes
down since it has a fixed supply of 21 million coins that will ever exist the bitcoin in a reserve might act as a hedge like gold guarding against money printing over time and this is really important because no matter how hard the president tries he cannot tell the federal reserve what to do some of the president's elect's advisers have suggested that you should resign um if he asked you to leave would you go no now reason number two is this would allow the united states to own the most valuable property in the world and in
the future potentially pay down the national debt reason three is president trump sees the potential and he doesn't want the us to fall behind in this digital reserve race once other countries realize the digital economy is going to be the future el salvador for example adopted bitcoin as legal tender which boosted its profile and even helped their tourism by 30% now the president of el salvador continues to buy bitcoin to this day and get this they were just told to stop doing that by the imf what's the imf if the federal reserve is to the
us and the european central bank is to europe then the imf the international monetary fund is a global money lender of last resort for the whole world and it just told el salvador "stop buying bitcoin." very interesting maybe the us is trying to counter global resistance by embracing bitcoin as a strategy which is also why the united states has now become the country with the biggest bitcoin stockpile but the next question is how will this strategic bitcoin reserve actually work and how is it different from the digital asset stockpile with all the other cryptocurrencies because
there's a lot of difference and there's some confusion but before i explain that when i first got into crypto i had the same questions most people do where do i buy it is it safe am i going to mess this up and lose my money and the truth is crypto can feel really complicated especially if you're just starting out and that's why i recommend coinbase as the easiest and most secure way to buy sell and store crypto my favorite coinbase feature is how simple it is to use now coinbase has been around for over a
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back to it now so far what we know is that there is the strategic bitcoin reserve and the us digital assets stockpile the two are separate and distinct the bitcoin reserve means the us is now the first major country to plant its flag in this digital economy with bitcoin as the cornerstone there's no xrp no salana no cardano it's just bitcoin no additional taxpayer dollars will be used to buy more bitcoin that means our paychecks will not be used to pump other people's bitcoin bags instead the government says it will sit on its roughly 200,000
bitcoin already in government hands that it seized from darkpools and from criminals over the years the order also makes it very clear they will not be selling bitcoin from this pile the white house also says the secretaries of treasury and commerce are authorized to develop budgetneutral strategies for acquiring additional bitcoin provided that those strategies impose no incremental costs on american taxpayers that means the us could get creative and start shifting some of its assets around like its gold holdings redirecting savings from president trump's department of government efficiency or even auctioning off other federal properties all
without dipping into our paychecks and that means bitcoin just graduated with honors it should no longer be dismissed as a ponzi scheme or get-richqu scam it is now recognized as a strategic asset sitting alongside oil gold and yes even that 1.4 billion pounds of cheese in missou's caves but what this really means is that the us is not banning bitcoin anytime soon in fact it's setting an example us states like texas or wyoming could start their own bitcoin reserves and even other countries like japan or singapore or even rivals like china might do the same
sparking a global race to stockpile bitcoin but also there's hedge funds family offices and even banks their excuses are gone if the us government deems bitcoin as a critical resource they've got no reason not to allocate at least a couple percent of their portfolios into it as well that's the strategic bitcoin reserve and it's very different from the digital asset stockpile which says it consists of digital assets other than bitcoin owned by the department of treasury that was forfeited in criminal or civil asset forfeite proceedings the government will not acquire additional assets for the us
digital asset stockpile beyond those obtained through forfeite proceedings meaning it will hold on to its other cryptos and will continue to stockpile all of them from the illegal activities but as of right now there's no order to buy more of them either directly or indirectly but the order also instructs that the treasury is allowed to sell from this stockpile so the next question is what does that mean for all the other cryptos that were originally mentioned like xrp salana and cardano i think that they could still serve a huge role in the future and here's
exactly four big picture ideas on why i think they were mentioned in the first place digital commodities digital currencies digital securities and digital tokens now bitcoin has 100% solidified its position as the world's leading global digital commodity so what the heck is that so we have physical commodities right things like corn wheat oil gold etc bitcoin is the digital abstraction of this idea of property and value without an issuer if that sounds confusing just picture digital gold number two though is digital currencies these would be your stable coins in other words digital currency backed by
fiat dollars fiat meaning money created by governments these are things like usdc tether and real usd from ripple someone like brad garlinghouse for example would play a huge role in influencing that space so those are digital currencies aka stable coins and digital payment systems then there's number three securities securities are things like stocks and bonds so digital securities on the blockchain backed by traditional securities so imagine being able to buy apple stock for example 24/7 because it's being traded on the blockchain and you could see the ownership and transfer of these assets in real time
right now securities don't work that way they are not held on the blockchain but it is possible for example the xrpl which is xrp's ledger could be used as the rails for digitizing this transformation of putting assets on the blockchain and xrp could play some role in that future as well it's super complicated but if you want to learn more about how that will work watch this video somewhere up here after this one and then of course there's number four digital tokens these are projects that have issuers or creators that will have some utility in
this digital economy and it's probably not going to be just one project most likely it's going to be a combination of projects like ethereum which is compared to programmable money or salana and or cardano and the role of these digital tokens is to raise money for smaller creator type projects that traditional money markets and banks are not going to give us money for so digital tokens do have a very real use case but now i want to talk directly to the person who watches videos like this who doesn't like crypto who doesn't like bitcoin and
thinks all of this is kind of a dumb idea no matter how valuable bitcoin becomes so i will try to talk to that person right now and respond in a respectful way and the first thing i want to say to that person is i hear you when you say if the us starts to subsidize people's investments why bother with crypto at all for example it makes sense to buy reserves of tangible things the us would actually need that's why we have reserves of medical equipment and food and aluminum and gold and cheese and all this
stuff but why does the us need to put bitcoin in there when will we ever need bitcoin it's a really good question and there is an answer to that sure the us could buy the index or individual high-quality companies like apple tesla or google instead but stocks are company assets bitcoin is a monetary asset stocks can go up and down and they can crash based on quarterly earnings bitcoin doesn't have earnings it's a protocol not a company the government doesn't need apple shares to survive financial collapses international banking crisis or economic warfare between countries but
a digital uninflatable untouchable store of value that could give value to the us dollar that's something the us might actually need at a later point but going a step further i still think there's room for the us to invest in altcoins or even stocks but instead of using the strategic reserve to do it with it instead could be done with something like the sovereign wealth fund what's the difference right think of a reserve like a bunker it's got safe stable stuff that could save the country in a pinch a sovereign wealth fund like norway's oil
stash takes risks for profit not safety and i propose we put nancy pelosi in charge of the us sovereign wealth fund i think she'll do great and xrp salana and of course cardano could do well in that fund as well but either way whatever ends up happening this is history in the making the us crypto reserve could rocket bitcoin past $100,000 all the way to a million and beyond especially if zero capital gains taxes kick in it would legitimize crypto on a global level but i'd love to hear your thoughts should trump stack bitcoin only
or diversify with xrp salana and cardano and bet on the whole digital economy let me know down in the comments below and please make sure to keep your coins off the exchanges and store them on the blockchain for maximum security and if you want to learn how to do that there's a free checklist in the description down below but you can also watch it step by step in a series of videos and you can take an additional 40% off at checkout using coupon code andre 40 please remember to stay safe thank you so much for
watching this video i'd love to hear your thoughts hope you have a wonderful rest of your day smash the like button subscribe if you haven't already i'd love to see you back here next week i'll see you soon bye-bye
