Bitcoin and the Dollar Hegemony: A Complex Political Game

In Mar-a-Lago, Florida, USA, a politician known as the "Orange Man" meets with "wishers" every week. Representatives of the cryptocurrency industry are no exception, and they want to make their wishes come true. However, we need to carefully consider whether these aspirations are really sensible.

Currently, the cryptocurrency industry has two main wishes: to establish a Bitcoin strategic reserve (BSR) and to promote regulatory policies favorable to the industry. However, these wishes may not be wise. Let's explore why and what might be a better option.

Problems with the (BSR) of the Bitcoin Strategic Reserve

Imagine the US government purchased 1 million Bitcoins as reserves. This would cause the Bitcoin price to soar in the short term, but it could then face serious risks:

1. Governments may buy and sell Bitcoin for political purposes rather than economic considerations
2. Regime change could lead to a new government dumping Bitcoin to raise funds
3. The market will worry about when and how the government will sell Bitcoin

This uncertainty will severely undermine market confidence in Bitcoin and the entire cryptocurrency industry.

A "Frankensteinian" crypto regulatory bill

The most popular regulatory scheme at the moment is likely to only benefit already wealthy centralized platforms, rather than true decentralized innovation. Such complex regulations can only be afforded by large, well-funded companies.

Is this really what the crypto community wants? Or is it just to profit a few companies? Such regulation does not change the existing industry landscape and does not provide substantial help for industry development.

A better wish

If I could make a wish, I would propose the following:

1. The U.S. Treasury Department announced plans to restructure the global reserve currency system, keeping the U.S. dollar as a trade currency, but converting reserve assets to Bitcoin
2. The Treasury buys Bitcoin at an above-market price while issuing a 100-year zero-coupon bond
3. Extend the maturity of government bonds and reduce interest expenses
4. Promote social media platforms to introduce US dollar stablecoin functionality to strengthen the position of the US dollar.
5. Establish a currency market exchange based on Web3 technology

This solution can:

• Maintain the status of the US dollar as the global trade currency
• Build Bitcoin as a globally neutral reserve asset
• Reducing the U.S. debt burden
• Promote innovation in cryptocurrency technology

The potential advantage of the United States in Bitcoin production

1. Abundant hydrocarbon resources, which can be directly used for Bitcoin mining
2. A mature capitalist system that is conducive to long-term investment
3. The local semiconductor industry can ensure the supply of ASIC chips.

If the United States is able to protect cryptocurrency and blockchain technology through legislation, it will greatly enhance its competitiveness in this field.

Conclusion

Participants in the cryptocurrency industry need to recognize the political reality. Although Trump's election brought some hope, actual policy changes may not be as swift as anticipated.

We should not expect "simple buttons". On the contrary, if you really care about the future of cryptocurrency, you should take action - reach out to your political representatives and voice your demands. It is only through sustained efforts that we can truly drive change and realize the ideals of cryptocurrency.