Schiff Blasts Trump’s BTC Reserve Plan and Pinpoints Holes

• Donald Trump continues courting Bitcoin supporters ahead of the U.S. election.
• The former president proposed an informal Trump reserve to HODL BTC at Bitcoin 2024, Nashville.
• Some observers called for a more radical BTC strategy. 

Donald Trump’s keynote address at Bitcoin 2024 in Nashville resonated with cryptocurrency enthusiasts. It highlighted his commitment to integrating Bitcoin at the governmental level should he win the November presidential race.

During his address, the former president covered various topics, including firing Securities Exchange Commission chair Gary Gensler over the perceived “War on Crypto” and plans for an informal Bitcoin Trump reserve. However, BTC critic Peter Schiff dismissed Trump’s Bitcoin reserve plans as fundamentally flawed and potentially self-sabotaging.

Schiff: Trump Reserve Fumbled

Schiff wasted no time critiquing plans for the Bitcoin Trump reserve, stating that Trump had inadvertently sabotaged his plan by publicly announcing it before taking office. 

The gold bug argued that this early revelation would give the Biden administration ample time to thwart the initiative, possibly by liquidating all government-held Bitcoin before a potential Trump administration could take over.

The U.S. government is estimated to hold approximately 210,000 BTC , valued at around $14 billion, acquired through criminal asset seizures. This substantial holding represents 1% of the total supply and is more significant considering the amount of BTC believed to be permanently lost.

During Bitcoin 2024, Trump criticized the U.S. government for violating the cardinal rule of never selling Bitcoin. If elected in November, Trump vowed to keep all government-held Bitcoin ‘into the future,’ effectively proposing an informal national HODL strategy.

More Radical Bitcoin Policy Wanted 

While the Bitcoin Trump reserve proposal received enthusiastic applause in Nashville, it fell short of a comprehensive treasury asset strategy. Unlike El Salvador’s approach, which involves regular Bitcoin purchases, Trump’s plan focused solely on retaining existing holdings acquired through criminal forfeitures.

This somewhat muted stance disappointed some Bitcoiners who had anticipated a more aggressive and radical approach from the former president, as reported by CNBC .

In contrast, Senator Cynthia Lummis offered a more ambitious vision at the same conference. Her ‘Bitcoin Reserve Bill’ outlined a formal strategic reserve featuring a network of secure storage vaults for transparent accounting of government Bitcoin holdings.

Additionally, Lummis’ bill took BTC integration to the next level by proposing the acquisition of over 1 million Bitcoin within a five-year timeframe. These assets would be held for at least two decades, with the express purpose of addressing the spiraling national debt.

On the Flipside

• The U.S. government moved just under 30,000 BTC on Monday, which coincided with a market sell-off.
• Lummis expects the Bitcoin Reserve Bill to eliminate the $35 trillion U.S. debt through a $3.3 million investment .
• Schiff blasted the Bitcoin Reserve Bill as inflationary.

Why This Matters

The debate surrounding the Bitcoin Trump reserve underscores the growing influence of cryptocurrency in geopolitics and economic strategy.

Trump pledges to relax crypto regulatory enforcement:
Donald Trump’s Bitcoin Plan Includes a Scaleback in Crypto Enforcement

Trump targets Bitcoin voters ahead of presidential election:
Trump Keynotes Bitcoin 2024 as Crypto Campaign Heats Up