The Bitcoin Standard could mean another century of American prosperity.
We propose that the United States Federal Government under direction from President Trump, empower and direct the US Treasury Department to make purchases of the cryptocurrency known as Bitcoin, with a goal of acquiring a plurality of said commodity.
This reserve should be held in trust on behalf of the American people.
The US Dollar has reigned as the dominant currency and de facto standard since 1944. While this status is not likely to change in the near term, it is in no way, an assumption that can carried far afield.
It should be noted that, it is assumed herein that USD global dominance has played a healthy, if not, essential role in US Global hegemony. Continued currency domination is vital to our national security.
While it is impossible to predict which store of value will usurp the American dollar. It is not completely impossible to imagine that the first implementation of the technology known as blockchain will be a contender.
Hoarding commodities under the guise of National Security is not unprecedented. In fact quite the opposite. The Strategic Peteoleum Reserve (SPR) is a well-known cavern that keeps roughly 20 days worth of raw crude for the use in the case of shortage.
While the SPR is not a speculative endeavor it does allow the Fed Gov. to direct purchasing and selling of a global commodity. These powers were enacted by an Act of Congress in 1973 nd so this is not to say that commodity purchasing can be undertaken by a president without oversight. But a precedent for commodity purchasing has been set and is, by now, a well worn trail across the Consitution.
Vital to American Interests
The Federal government has repeatedly, over its esteemed history, acted to snatch up territory in the name of National Security.
Thomas Jeffersons Louisiana Purchase being the most notable. In this action, land West all the way to 1803 was purchased by Fed Gov.
The Fed Gov should act under the aegis of national security to acquire large swaths of the nascent Bitcoin. For trifling sims by Fed Gov standards, the government can act to ensure US standing in the world under a theoretical but not far fetched global order that has embraced cryptocurrency (namely Bitcoin) as its unit of account.
Not a generation of Americans that still walks the earth is not used to and in some ways. Dependent upon, outsized US influence in the world. Amounting to just 5% of the global population, America is still considered, at least certainly by itself, to be the largest stakeholder on this globe.
Radically shifts in monetary scheme are not historically unprecedented. The US should arm itself for all reasonable eventualities. A Crypto monetary scheme would almost certainly involve the founding chain of Bitcoin.
The federal reserve will see this in exclusively negative terms. However an executive bent on restoring power to the people will inevitably realize the power they can seed into the Fed Gov for these people by purchasing a large quantity of the first digital commodity and placing it in trust for the people themselves.
In fact, if true populist sympathies exist. This could enable the president to carve out a niche reserve that could exist outside the bounds of our traditionally understood three branch system.
If owned and controlled by the executive, that branch could suddenly find itself with purse strings of its own. Getting congress to approve such a plan would not happen knowingly but this is not a solicitous impossible.
How to Acquire
Enlist market professionals pro-bono to setup and administer proper buying of said asset from exchanges around the world. Leverage CiA and NSA assets to cover most of the activity.
Public discovery of such a directive will be the biggest news in decades. It will shock markets. It will drive the price of Bitcoin skyward. And it will cause a scramble of all other nation states as they ramp up their own purchasing.
In this way, proper execution has a self-fulfilling aspect to it. US announcement that it has procured and will maintain a Crypto reserve will instantly legitimate and drive skyward the price of Bitcoin.
Further rules ought be outlined re: US governments ability to go above a certain threshold. However the US government ought to maintain some crpto mining farms.
A side effect of price explosion will mean the opportunity for profitable mining will proliferate across all of the country. So as usual America can rely less on institutional forces w/r/t mining and yet it should still maintain a footprint, that, should be constitutionally restrained from ever going near the 51% threshold.
However unused but ready-to-go mining power ought always be kept in place to prevent another player like China from every entertaining the thought of a 51 attack.
Cryptocurrency is here. At present there are hundreds of varieties. But only one with the distinction of first and longest blockchain. That cryptocurrency is Bitcoin. Just as Jefferson saw the need for Fed Gov to acquire the land to his nations west. So too must our President see the Strategic imperative present in Bitcoin. Acquiring a large stake will ensure American hegemony should history books recount the age of Cryptocurrency someday.
This approach is preferable to a government led attempt to re-implement a blockchain of its own for so many obvious reasons that only a Fed gov bent on power over its citizens would not see.