He’s Going To Sell It All and Buy BITCOIN (Uncut) 03-29-2025

He’s Going To Sell It All and Buy BITCOIN | Alan Hibbard on Strategic Reserve

If I were a betting man, and we kind of all are in our own ways, you kind of have to be, you got to place your bets somewhere, I would bet that eventually all these other digital assets get sold. And it makes a lot of sense to use the proceeds to buy Bitcoin. Hello GoldSilver family, Alan Hibbert here with another video and today I want to talk about what I think is the most important economic announcement in the United States in the last 50 years, the creation of a strategic Bitcoin reserve.

Now this happened about a week and a half, two weeks ago, but this is so important and it’s going to be one of the most important topics on everybody’s radar for the next few years. So I want to bring you the most important details and tell you what that fund includes, what it doesn’t include, some of the speculation around it and why it is so important for you to understand. So let’s dive in.

We are starting with a tweet that came out, I think the day or yeah, just a few minutes ago, just a few minutes after President Trump signed that executive order to establish a strategic Bitcoin reserve. The reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal and civil asset forfeiture proceedings. This means it will not cost taxpayers a dime.

Very important. It is estimated that the US government owns about 200,000 Bitcoin. However, there has never been a complete audit.

The executive order directs a full accounting of the federal government’s digital asset holdings. The US will not sell any Bitcoin deposited into the reserve. It will be kept as a store of value.

The reserve is like a digital Fort Knox for cryptocurrency, often called digital gold. OK, and there’s a lot more to this tweet. We’re not going to go into it.

What I want to do is actually read parts of the executive order that are most important and then show a little bit of commentary about what some other people are saying about this, because it is so, so, so important. First of all, I want to go back to a tweet actually from November of last year. This is when Trump first floated the idea of a strategic Bitcoin reserve out into the public.

And Jack Mullers, a Bitcoiner, says the US establishing a Bitcoin strategic reserve, as proposed by Senator Cynthia Lummis, would rank among the most pivotal events in our economic history. I agree. Empowering the people and restoring trust in our economic policies by aligning them with innovation, progress and ethical integrity.

So, yeah, I actually replied to his tweet back in November and I said, he’s not wrong. And just as a brief example, I gave some of the important economic developments that happened in the United States. In 1933, it became illegal for American citizens to own gold.

I mean, that was absolutely terrible. This is a negative announcement for the people. The following year, the dollar was devalued 41% overnight, impoverishing a lot of people.

1971, the gold was removed. The gold backing was removed from the dollar. That’s terrible.

1975, OK, citizens can legally own gold again. That’s, I guess, better than nothing. 2008, tax dollars were given to bail out the banks and set a very dangerous precedent going forward.

And then 2024, or it turns out it’s 2025 now, the US gets a national Bitcoin strategic reserve. That’s actually a good thing. That’s a good thing.

All these other developments were bad. So this is a big shift. I would encourage everyone to pay attention to this going forward, and I would really encourage everyone to clarify your assumptions around Bitcoin, what it is and what it isn’t.

It’s so, so, so important. So back in 1984, Friedrich A. Hayek said, I don’t believe we shall ever have a good money again before we take the thing out of the hands of government. That is, we can’t take it violently out of the hands of government.

All we can do is by some sly, roundabout way, introduce something that they can’t stop. I think Bitcoin is that thing. It was some sly, roundabout way of introducing something that governments can’t stop.

And not only can they not stop it, but it is so powerful. It has such a strong gravity with such strong incentives that governments have to adopt it. They have to use it themselves.

And when I say use it, I mean, hold it, because that’s what you do with money. You don’t spend money to use it. You spend money when you stop using it.

So yes, I do think I do think Bitcoin is that thing. So here is the executive order. You guys can find this online pretty easily, but I’m actually going to read off of some screenshots that I have because I have some highlights.

So let’s start with section one, the background. Bitcoin is the original cryptocurrency. The Bitcoin protocol permanently caps the total supply of Bitcoin at 21 million coins and has never been hacked.

As a result of its scarcity and security, Bitcoin is often referred to as digital gold. Digital gold. So already right off the bat, comparing Bitcoin to gold.

I think in order to appreciate what’s going on here, you have to not only read what’s written, but you have to read what isn’t written. So you have to imagine what could they have said in this executive order? Well, they could have said, Bitcoin is a cutting edge technology and blockchain is very promising. So we want to have the first major blockchain.

But they didn’t say that, right? This isn’t about blockchain. This isn’t about innovation or entrepreneurship. This is about digital gold.

Digital gold. Very important. Because there is a fixed supply of Bitcoin, there is a strategic advantage to being among the first nations to create a strategic Bitcoin reserve.

The United States government currently holds a significant amount of Bitcoin, but has not implemented a policy to maximize Bitcoin strategic position as a unique store of value in the global financial system. Okay. Unique store of value.

This is a store of value, right? They could have said, Bitcoin is going to be the currency of the future. And one day Americans everywhere will use it to buy a cup of coffee. No, they did not say that.

They said store of value, store of value, not medium of exchange. Very important. Just as it is in our country’s interest to thoughtfully manage national ownership and control of any other resource, our nation must harness, not limit, the power of digital assets for our prosperity.

Okay. Section two. So what is the actual policy here? What’s going on? It is the policy of the United States to establish a strategic Bitcoin reserve.

Okay. Number one. So we’re establishing a strategic Bitcoin reserve.

Number two, it is further the policy of the United States to establish a United States digital asset stockpile, okay, that can serve as a secure account for orderly and strategic management of the United States other digital asset holdings. Okay. So there’s actually, this is actually two things.

One for Bitcoin, one for other digital assets. Keep that in mind because we’re going to talk about that distinction as we go. Section three.

How do we create it and administer it? The secretary of the treasury shall establish an office to administer and maintain control of custodial accounts collectively known as the strategic Bitcoin reserve. How is it capitalized? Well, with all the Bitcoin held by the department of the treasury that was finally forfeited as part of criminal or civil asset forfeiture proceedings or in satisfaction of any civil money penalty imposed by any executive department or agency. Okay.

It’s a long sentence. There’s a lot going on. So far, the Bitcoins to start the fund are coming from criminals.

Basically, anyone who committed a crime and stole some Bitcoin. Okay. Now the government has it, and that’s going to be the seed capital for the fund.

Moving on down, government Bitcoin deposited into the strategic Bitcoin reserve shall not be sold. Shall not be sold. This is important.

They’re holding the Bitcoin. There’s no plan to sell it at a profit or sell it to use the proceeds for something else. That’s important.

All right. Remember that because it’s in stark contrast to what we’re about to see the other fund here, the digital asset stockpile. That’s capitalized a similar way with assets taken from criminals.

The secretary of the treasury shall determine strategies for responsible stewardship. Okay. It doesn’t say the other digital assets shall not be sold.

Right. It only says that for Bitcoin. For the other digital assets, the secretary shall determine strategies for responsible stewardship, which could mean selling them.

Okay. Keep that in mind. The secretary of the treasury and the secretary of commerce shall develop strategies for acquiring additional government Bitcoin.

Okay. So they’re going to acquire more Bitcoin provided that such strategies are budget neutral and do not impose incremental costs on US taxpayers. I think that’s a very responsible way of doing it.

Budget neutral. Don’t use any taxpayer money. Fantastic.

However, the United States government shall not acquire additional stockpile assets other than ones taken from criminals. So we’re planning to get more Bitcoin, but we’re not, we’re definitely not taking any other assets that aren’t Bitcoin. That’s pretty important to understand.

Why is the government making such a distinction here? It’s because one is a store of value and the other, they’re not. So again, we’ll come back to that. Section four, accounting.

Very simple here. Within 30 days of the date of this order, the head of each agency shall provide the secretary, blah, blah, blah, a full accounting of all government digital assets in their possession. So within 30 days, and we’re already maybe 10 or 12 or something days past, we should get an accounting.

We should know how much Bitcoin, how much of all the other coins they have and probably what their plans are for acquiring more Bitcoin. What are those revenue neutral ways going to be? So some key takeaways here. There’s two funds, right? The strategic Bitcoin reserve and the U.S. digital assets stockpile.

And when you put them side by side and think about what they are, how they’re capitalized, what the plan is going forward, you see just how different Bitcoin is from everything else in the eyes of the U.S. government. This isn’t some 14 year old on Twitter saying like Bitcoin’s digital gold, right? This is the U.S. government. Okay.

So what is the raison d’etre? The reason for being, why does this even exist? Well, it is quote unquote, digital gold, Bitcoin, digital gold, strategic advantage to being first and a unique store of value. For the digital assets stockpile, they didn’t give a reason. And unless I missed it, but I read it a couple of times.

I didn’t see a reason for why they even have a digital assets stockpile. I’ve heard Trump say that it’s to be pro-American business. So he tweeted about some of the coins that were founded by American companies, but that’s not in the language here.

So I don’t really know why we would want to have a digital assets stockpile. I don’t know why it’s there. So anyways, how is it going to be seeded or capitalized? Well, all Bitcoin that’s basically coming from criminals and then all digital assets other than Bitcoin coming from criminals.

Okay. Within the next 30 days, we should get a full accounting of all assets of both types. And what is the plan for acquiring more of each? Well, in the case of Bitcoin, we shall develop strategies for acquiring additional Bitcoin that are budget neutral and do not impose incremental costs on U.S. taxpayers.

For all the other digital assets, shall not acquire additional assets other than from criminals. And in terms of the disposition, the exit strategy, right? How does this all end? In the case of Bitcoin, they shall not be sold. In the case of all the other digital assets, we shall determine strategies for responsible stewardship.

And if I were a betting man, and we kind of all are in our own ways, you kind of have to be, you got to place your bets somewhere. I would bet that eventually all these other digital assets get sold. And it makes a lot of sense to use the proceeds to buy Bitcoin.

I think that is just going to happen. I don’t know how soon. Quite frankly, it doesn’t matter to me.

I think it’s inevitable that whatever all these other coins are, they will be sold and the proceeds will be a revenue neutral way that won’t cost a taxpayer a cent of acquiring more Bitcoin for the country. Again, when does it happen? I don’t know. But I think it’s inevitable.

So all of this, Bitcoin versus everything else can be summarized with this Venn diagram that I first saw years ago. It is so helpful, in my opinion. There is a myth that most people have in their brains, and I was one of these people many years ago, that fiat is its own animal.

And separate from fiat is the world of cryptocurrencies, a subset of which is Bitcoin. Bitcoin is one of the many cryptocurrencies, and those are all different from fiat. And this is how people think about all these different assets.

I think that is very misleading, very misleading. Much closer to the truth, a better mental model is the one on the right, where fiat is its own thing. And all these other cryptocurrencies are a subset of fiat.

They are all currencies with a central issuer. They all have a set jurisdiction or network in which you can use them. There’s a central group that manages the rules or the codes and enforces them or creates exceptions.

And those are all distinct from Bitcoin. Bitcoin is a separate thing. It is decentralized.

We all collectively own it and can use the network. No one can tell you what you can and can’t do on the network. Your ability to use the network is the same as the U.S. government or any large player.

I think this is a much better way of thinking about these assets. Bitcoin is different from everything else. So what are the implications here? What are people saying about the creation of the strategic Bitcoin reserve? Well, Deutsche Bank report says U.S. reserves makes Bitcoin a hard reserve asset.

It could change international standards for global reserves. It could. Yeah, I think it is for sure.

It’s happening. The game theory is playing out. It is inevitable.

The U.S. has to adopt Bitcoin eventually. It turns out they are. Every other country has to adopt Bitcoin eventually.

It’s just a question of who does it in what order. So I think it’s inevitable. Ryan Rasmussen says the end game was never the U.S. government buys all the world’s Bitcoin.

No. However, a U.S. strategic Bitcoin reserve means other countries will have to buy Bitcoin. Yes, true.

Wealth managers have no excuse not to buy Bitcoin. They had an excuse, right? They thought Bitcoin could be outlawed. There might not be support from governments and so forth.

There’s no excuse anymore. Financial institutions have no excuse. Pensions, endowments have no excuse.

The fear of the U.S. selling is gone. The U.S. will likely buy more. And within 30 days, we should see a plan to acquire more Bitcoin.

The likelihood of states buying just went up. The probability the government outlaws Bitcoin is definitively zero. I would say for the next few decades, it’s probably zero.

But just like the U.S. government outlawed gold in the 1930s, they could outlaw Bitcoin again at some point. But I think for the next little while, the probability is zero. This changes everything.

Zoom out. I agree. I agree.

I want to leave you guys with this image right here. This is power, a graph of power over time. And you can see how long these timescales are, about 250 years to gain and lose power.

We’ve got Dutch power, British power, U.S. power, and Bitcoin power. And Thomas Ferrer says, you get the opportunity to front run the Bitcoin strategic reserve once. Do not f*** this up.

Thank you guys for watching. I’ll see you in the next video.