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Bitcoin a Chinese financial weapon? Quite a sensational headline, but BTC could indeed reduce the power of the US Dollar. The US Government may be forced to amass BTC to protect US financial dominance, but how would they actually do that? Here’s what I came up with. What options am I missinng?

Let’s say the US Government decided it had to amass 1 million Bitcoin. That would be around 5% of the total Bitcoin supply, give or take. (Coincidentally, this is also the amount of Bitcoin believed to have been mined and held by Bitcoin‘s creator, Satoshi Namamoto.)

**Option 1: Mine Bitcoin [insufficient]**
This really won’t get the US Government very far. Only 18,250 new BTC will be mined per year for the next few years, and that goes down by half every four years. Even if the US Government somehow came to control a significant share of the world’s total mining power, mining alone would never produce 1 million BTC for the US Government.

**Option 2: Buy Bitcoin [possible]**
At today’s prices, 1 million Bitcoin is worth 60 billion dollars. That doesn’t mean that the US government could buy 1 million Bitcoin for $60B, but it’s not inconceivable that the US Government could buy it’s way to 1 million Bitcoin. To put it in perspective, Microstrategy has amassed ~90,000 Bitcoin through smart Bitcoin purchasing strategies, and Tesla owns ~45,000 Bitcoin.

**Option 3: Accept Bitcoin as tax payments [possible]**
Similar to how Tesla will let people buy cars with Bitcoin and then hold that Bitcoin in its treasury rather than cashing BTC proceeds into to US Dollars, the US Government could accept tax payments in Bitcoin and amass them in the US Treasury. The US Government collects ~2 trillion dollars in taxes from individuals each year, so even if a small fraction was paid in Bitcoin, that could conceivably add up to a large Bitcoin war chest for the US Government over time.

**Option 4: Skim Bitcoin from US hodlers through an annual Bitcoin Wealth Tax [possible]**
Imagine you had to pay 1% of your Bitcoin holdings to the US Government each year. Maybe you think this is unfair and unlikely, but a Bitcoin Wealth Tax is far more mild than the hammer of Option 5, for which there is precedent.

**Option 5: Seize all Bitcoin from US citizens through decree [possible]**
Sounds crazy, but almost this exact thing happened in the US with gold in 1933, with President Roosevelt’s [Executive Order 6102](https://en.wikipedia.org/wiki/Executive_Order_6102). This order made it illegal for US citizens to hold significant quantities of gold, and it forced people to exchange gold for gold-backed US Dollars. The US Dollar was somewhat pegged to gold until 1971, when the US Dollar became a truly untethered fiat currency subject to arbitrary monetary supply inflation, resulting in the macroeconomic environment that has given rise to Bitcoin. (kind of meta, right?)

**Option 6: hack/seize it from Iran and other adversaries [possible]**
Seems technically possible, but I believe this would be an act of war. Which would be tough to imagine, unless we were already at war with the target nation.

**Option 7: anonymously hack or steal bitcoin from hodlers [unlikely]**
Seems technically plausible through widespread social engineering, hacking of exchanges, or various MITM/browser/ISP fuckery, but this would probably be a last resort move for the US Government. Not sure how they’d ever be able to publicize ownership of this stolen Bitcoin without admitting to massive criminal theft.

Long post, thanks for reading. If you have other plausible ideas for how the US Government could stack 1 million Bitcoin, please share your thoughts.



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10 Comments

  1. Decision decision and decision. But isn’t it too late for the US government to buy it? Why didn’t they think of buying it when Bitcoin is $3000 a piece? They still look down upon it even today. Bitcoin will teach the snooty elites a big lesson.

  2. I read this article yesterday. The only thing is that the US government is a lot smarter than the individual who wrote this article. From my understanding, the FBI and NSA have already investigated who Satoshi is and his purposes for inventing Bitcoin and they will not talk about their findings. But the sole reason for the investigation was to make sure that bitcoin wasn’t being used by the Chinese or Russia as a financial weapon against the west.

  3. Go to Coinbase, get a user list, pass out $5 wrenches to field agents, profit

    You’re overthinking how hard it is to get bitcoin if you’re a government

    Basically similar to the 1933 gold seizure. Force small holders to give up, make big holders flee the country. And nationalize bitcoin businesses like Coinbase, fold the businesses that won’t play ball, shrink dramatically the ones that will comply, and use the shells that remain to operate your own new govt banking system, fully neutered.

    They can’t change bitcoin but they can make almost everyone in the invisible prison miserable, and if they know that you specifically have some and they can get their hands on you, they can make your life miserable.

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