Image Credit: John Partipilo via Tennessee Lookout
By Stan Szymanski
I like President Trump for all he is doing to right a lot of wrongs in the United States. But regarding him wearing the self-proclaimed mantle of the ‘Crypto President’, he is serving up an unparalleled deception of financial sovereignty with this idea of a national Bitcoin (or Crypto) Reserve for the United States.
…’A U.S. Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration, which is why my Executive Order on Digital Assets directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA. I will make sure the U.S. is the Crypto Capital of the World. We are MAKING AMERICA GREAT AGAIN!’…(President Donald Trump via TruthSocial)
The President went on to say: …’And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be the heart of the Reserve. I also love Bitcoin and Ethereum!’…
…’Trump’s announcement Sunday builds on an executive order Trump issued Jan. 23 directing his administration to create a “working group” to propose a regulatory framework on digital assets, which includes evaluating a “national digital asset stockpile.”…(Forbes 3/2/25)
Matas U., Founder of Redcastle Reaearch and Market Strategist at Myriad Capital said in a post yesterday Mar. 2, 2025:
…’Republicans created DOGE to avoid wasting taxpayer money and now they just decided to pursue the opposite.’…(Matas U. (3/2/25))
Why would the pursuit of a ‘Bitcoin Strategic Reserve’ be a waste of taxpayer funds? Because according to Charles Najjar of Rayna Investment Milan, Italy (3/2/25):
…’Bitcoin mining is a doomed business (and therefore Bitcoin itself) because of continuously increasing operating costs, totally uncontrollable revenues that depend on a random attribution of Bitcoin rewards that miners can’t sell without pressuring down Bitcoin price. All Bitcoin miners have to face the total absurdity of the halving rewards every 4 years which is the ultimate killing feature of the Bitcoin protocol where miners receive half the Bitcoins earned for the same amount of computational work!’…(Charles Najjar)
__________________________
Please refer to our proviso at the end of the article regarding any reproduction of this writing (This means those who modify my writing for their benefit and own financial gain and even plagaristically put their name on my work) and consider a donation to Encouraging Angels today. We need your support
—————————————-
So how have the Bitcoin Miners fared? Najjar give poignant examples:
🤔Core Scientific (the largest company in harshrate. It aleady defaulted in 2022 and struggling again… )
🤔 MARA (increasing cost per Bitcoin mined, forced to buy the Bitcoins it produces to support the price!)
🤔 RIOT (same as MARA)
🤔 Argo Blockchain (very close to bankruptcy)
🤔 Stronghold Digital (becoming a penny stock)
🤔 Hut 8 (negative operating cash-flow, declining stock price despite the rise in BTC price)
🤔 CleanSpark (same as Hut8)
🤔 Hive Digital (becoming a penny stock)
🤔 Bitfarms (becoming a penny stock)
🤔 Bitdeer (same as Hut8)
🤔 Terawulf (becoming a penny stock)
🤔 Cipher Mining (becoming a penny stock) (Matas U. (3/2/25))
Bitcoin mining is a fundamentally flawed business. Apparently, -all- miners are struggling to become profitable in any way. And this is the business model that is underpinning the proposed ‘Strategic Bitcoin Reserve’ of the United States of America?
On January 10, 2025 I wrote an article entitled ‘Money For Nothing-The Ill-Conceived Notion That Bitcoin Will Shore Up the Failing US Dollar’. I stand by my convictions. Regarding the impact on Bitcoin itself of this failed viability of Bitcoin mining:
…’they will ALL inevitably collapse they will be forced to liquidate their massive Bitcoin reserves and provoke a new Bitcoin collapse that will make the 2022 one look like a picnic. ’…(Charles Najjar 3/2/25)
The BRICS nations have bet heavily on Gold and Silver as the foundation for a new monetary system. Central Bank purchases have been massive over the past 15 years since the Great Financial Crisis (GFC). The first BRICS meeting was held in 2009 in the wake of the GFC in 2008. The other countries of the world had had enough of the money printing hegemony of the United States/Federal Reserve and embarked to build a system of transaction that was more equitable and built on something else than the ‘Money for Nothing’ scam of the U.S. Central Bank; namely Gold and Silver.
Fewer and fewer issue of US Government bonds are being bought by the rest of the world. The other countries and institutions of the world used to look to the United States States Treasury Bills, Notes and Bonds as the highest form of financial safety.
No More.
The ‘powers that be’ state that:
…’the Congressional Budget Office forecasts Treasury supply to increase by more than $20 trillion (emphasis added) over the next 10 years.‘…(Michelle Neal, Head of the Markets Group
Remarks at the ISDA/SIFMA Treasury Forum, New York City-Federal Reserve Bank of New York)
When no one else wants to buy your debt (U.S. Treasuries) how do you fund the service of said debt and the redemption of the principle on those Bills, Notes and Bonds?
The way I understand how the administration wants this all to work with the Strategic Bitcoin Reserve is that the ‘StableCoins’ like Tether will now be the big buyers of Treasury debt. In order for a ‘Coin’ like Tether to be hypothetically ‘stable’ is to have it backed by ‘stable’ assets like US Treasuries.
Typically, in order to buy Bitcoin (or any other cryptocurrency) with ‘cash’, one must first convert cash into a StableCoin such as Tether and then the Tether can be ‘traded’ via a trading pair into Bitcoin. Theoretically, if the Bitcoin/Cryptocurrency market in the United States States expands then that creates a bigger demand for Tether and if more Tether (Stablecoin) is coined (issued) to buy Crypto, then that will necessitate the purchase of a similar amount of US Treasury issuance to back the newly issued Stablecoins, like Tether.
What conclusions can be drawn from looking at this as a plan of implementing a ‘Bitcoin Strategic Reserve’ to throw a life preserver around the US dollar?
…’US taxpayer just became exit liquidity...
🤨 1st. By announcing this reserve, US can be front run. I buy Bitcoin now; later US has to buy from me. It's... Unbelievable.
🤨 2nd. XRP, SOL and ADA is largely owned by insiders- teams that created them. Why in their right mind would US choose to buy it from them? US will be cashing out the insiders and making a new list of billionaires at the expense of taxpayers.
🤨 3rd. Literally no reason for a government to hold existing crypto. You know all crypto codes are open? If US wants to have Bitcoin supply, they can create their own US_BTC in a week. (COMMENT: The Trump Executive Order basically Prohibits the establishment of a Central Bank Digital Currency (CBDC)…but who says that he couldn’t change his mind?)
This comes a week after SEC confirmed that crypto tokens are not investment contracts and should not be classified as securities.
What to do now?
👉 Front run US government.
And for traditional investments:
Bullish for stocks. Clearly risk-on.
Bearish bonds. Inflationary pressure.
Bearish DXY. Print currency to buy imaginary currency. (Matas U. (3/2/25))
IMHO, only precious metals such as gold and silver are suitable for a foundation for a monetary system. This goes for nations and it goes for individuals.
If this plan for a ‘Bitcoin Strategic Reserve’ deception is the best America has to offer its citizens and the world, expect your personal financial experience/survival (absent of ownership of precious metals) to begin to deteriorate with an ever quickening pace.
———-
If you appreciate this article can you consider a gift to Encouraging Angels for the intelligence we provided today? Click this link to give. We need the support. Links to this article are encouraged. Reproductions of this writing are only allowed by written permission of the author and those reproductions must include this proviso of request for support, how this writing may be reproduced and following disclaimers.
All opinions are that of the authors and not necessarily that of Encouraging Angels.
All rights reserved.
Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is the not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice. For informational purposes only.