Bitrabo Editorial
In the ongoing global economic and geopolitical competition, the United States may have a potent new tool – Bitcoin (BTC). Sam Lyman, the director of public policy at Riot Platforms, a major Bitcoin mining company, argues this point.
American Economic Supremacy Potential?
According to Lyman in a Forbes article, there are similarities between today’s digital asset economy rivalry and the historic “space race” during the Cold War between the US and the Soviet Union.
Lyman believes that just as the US won the space race by putting a man on the moon first, Bitcoin could serve as America’s “Trump card” in its economic competition with China.
Lyman’s idea involves classifying Bitcoin as a strategic reserve asset for the US – a valuable resource that nations accumulate to fortify their defenses, stabilize their economy, or gain an advantage over competitors. Traditionally, commodities like gold, oil, and essential minerals have fulfilled this role for countries globally.
However, Lyman argues that due to its scarcity, portability, and evolving status as a store of value, Bitcoin could be an excellent digital counterpart to physical gold reserves.
Bitcoin Versus Gold
While China and Russia are aggressively amassing gold to lessen their reliance on the US dollar, the US could respond by integrating Bitcoin into its financial arsenal. According to Lyman:
Designating Bitcoin as a strategic reserve asset would kickstart the Bitcoin Space Race. If the US, the wealthiest country globally and the hub of global capital, starts accumulating Bitcoin, other nations would likely follow suit.
Lyman suggests that this move could deter or even reverse the recent shift away from the US dollar to physical gold by major US adversaries. Instead, it could spur a “digital gold rush” as countries rush to amass the world’s scarcest digital asset.
This concept has garnered interest from some US politicians. Lyman mentioned that House Majority Leader Tom Emmer conveyed to him that diversifying investments makes sense as the US embraces the “ownership economy.”
Emmer also expressed a willingness to discuss this further with former President Donald Trump, who has openly advocated for Bitcoin and cautioned against surrendering ground to China and Russia in the digital asset realm.
As reported by Bitrabo, Senator Cynthia Lummis is reportedly preparing a bill that would mandate the Federal Reserve to procure and hold BTC as a strategic reserve asset, aiming to secure Trump’s backing for the proposed legislation.
Whether the US will deploy Bitcoin as a “Trump card” against its rivals remains unclear. Yet, with increasing interest from political figures and the crypto industry, it could potentially have substantial geopolitical implications in the future.
At the time of writing, the dominant cryptocurrency in the market is trading slightly above $65,000, having failed to solidify above its 1-month peak of $68,000 earlier this week.
Image by DALL-E, chart from TradingView.com