August 4, 2025 • 12 mins
Episode 16: What If the U.S. Adopted Bitcoin as a Reserve?
Could the U.S. really put Bitcoin on its balance sheet?
In this episode, we explore what it would actually mean for the U.S. to adopt Bitcoin as a reserve asset — and what the ripple effects could be.
Would it back the dollar with Bitcoin, or simply hold BTC like it does gold?
Could the Federal Reserve still manage interest rates and respond to crises?
Would such a move restore trust, or throw the existing financial order into chaos?
We unpack the possibilities, tradeoffs, and long-term implications of a world where America bets big on Bitcoin.
Stay curious. Stay grounded. Let’s build better.
Listen now and follow The Crypto 101 Show for more deep-dive episodes in this series.
Join the discord server - https://discord.gg/Y9CPnYm8C2
Looking for Crypto apparel? Crypto 101 swag, shirts and apparel available here. This episode is sponsered by Joe Ugly Apparel - www.joeuglyapparel.com
This week's episode was produced by The WIld 1 Media. If you or anyone you know is looking for podcast editing, podcast production, or any other podcast services please reach out to The WIld 1 Media at www.thewild1media.com. Thanks for listening.
FOLLOW US ON:
Facebook - @crypto101show or https://www.facebook.com/The-Crypto-101-Show-100158338867665
Instagram - https://www.instagram.com/crypto101show/
Sign up for our newsletter - thecrypto101show@gmail.com
Produced by The Wild 1 Media - www.thewild1media.com
Check out our other podcasts-
https://darksidediaries.sounder.fm
https://anchor.fm/ttmygh
https://anchor.fm/morning-joe-rant-show
Show music provided by Doula Graves & The Down Sideup
#bitcoin #BTC #crypto #cryptocurrency #defi #coins #cryptocoins #blockchain #finance #governments #policyagnostic #inflation #centralbanks #technology #sats #dectralized
Could the U.S. really put Bitcoin on its balance sheet?
In this episode, we explore what it would actually mean for the U.S. to adopt Bitcoin as a reserve asset — and what the ripple effects could be.
Would it back the dollar with Bitcoin, or simply hold BTC like it does gold?
Could the Federal Reserve still manage interest rates and respond to crises?
Would such a move restore trust, or throw the existing financial order into chaos?
We unpack the possibilities, tradeoffs, and long-term implications of a world where America bets big on Bitcoin.
Stay curious. Stay grounded. Let’s build better.
Listen now and follow The Crypto 101 Show for more deep-dive episodes in this series.
Join the discord server - https://discord.gg/Y9CPnYm8C2
Looking for Crypto apparel? Crypto 101 swag, shirts and apparel available here. This episode is sponsered by Joe Ugly Apparel - www.joeuglyapparel.com
This week's episode was produced by The WIld 1 Media. If you or anyone you know is looking for podcast editing, podcast production, or any other podcast services please reach out to The WIld 1 Media at www.thewild1media.com. Thanks for listening.
FOLLOW US ON:
Facebook - @crypto101show or https://www.facebook.com/The-Crypto-101-Show-100158338867665
Instagram - https://www.instagram.com/crypto101show/
Sign up for our newsletter - thecrypto101show@gmail.com
Produced by The Wild 1 Media - www.thewild1media.com
Check out our other podcasts-
https://darksidediaries.sounder.fm
https://anchor.fm/ttmygh
https://anchor.fm/morning-joe-rant-show
Show music provided by Doula Graves & The Down Sideup
#bitcoin #BTC #crypto #cryptocurrency #defi #coins #cryptocoins #blockchain #finance #governments #policyagnostic #inflation #centralbanks #technology #sats #dectralized
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:09):
Welcome to the Crypto one on one show, where we
dive into the world of cryptocurrencies, bitcoin, blockchain, and all
the technology with it. Whether you're experienced or a beginner
to crypto, our goal is to break down complex concepts
and make it easy for you to understand the basics,
from bitcoin to all coins. We'll cover it all in
a way that's easy to digest and provide listeners with
(00:30):
the knowledge and understanding they need to make informed decisions
and better critical thought. Sit back, relax, and let's simplify
your understanding of cryptocurrencies on the Crypto one on one Show.
(00:51):
The Bitcoin Series, Part sixteen, What if the US adopted
bitcoin as a reserve. I need to start off by
saying this is not financial advice, so if you are
looking for that, the show is in for you. The
content of this podcast episode is for informational purposes only.
The opinions expressed here are not meant to be taken
as financial investment or any other advice. What if the
(01:16):
US added bitcoin to its reserves, not as a gimmick,
not as a hedge, but as a real strategic asset
like gold or foreign currencies. It sounds extreme, but is
it really would it strengthen the dollar or weaken it?
Would it restore trust or unleash chaos. In this episode,
we're asking what a bitcoin back US reserve might actually
(01:39):
look like, what it would change, what it would cost,
and whether a shift like this could ever happen without
tearing something else apart. So let's jump in question one.
What does it even mean for bitcoin to be a
reserve currency? Let's start with the basics. When people say
bitcoin could become a reserve currency, what do they actually
(02:01):
mean Because it sounds huge, like a tectonic shift in
the financial order, but the reality could take many forms,
some subtle, some seismic. With rising national debts, concern about inflation,
and the increasing mainstream adoption of cryptocurrencies, the idea of
bitcoin as a reserve asset is no longer just a
(02:23):
fringe discussion, but a serious consideration for some. So here's
the question. Would the US back the dollar with bitcoin
or would it just hold bitcoin the way it holds
gold or foreign currencies as part of its strategic reserves.
Let's break that down. Scenario one bitcoin back dollar. This
(02:44):
would be a hard break from the current system. The
US could, in theory, peg the dollar to bitcoin. Say
one bitcoin equals x amount of dollars and the government
guarantees convertibility. That's a full blown bitcoin standard, similar to
the gold standard of the past. It would radically limit
(03:04):
money printing, no more federal reserve flipping levers, and flooding
the market with liquidity. The dollar would become a digital
proxy for something the government can't create out of thin air.
Sounds like a bitcoin maximalist dream, but it would be
a policymaker's nightmare. Why because it would strip the US
of its monetary sovereignty. Monetary sovereignty allows a government to
(03:29):
independently manage its economy, control inflation, and stimulate growth during
downturns through tools like interest rates adjustments and quantity of easing.
Giving that up means ceding crucial control over the nation's
economic destiny. It couldn't inflate away debt, it couldn't stimulate
in a crisis, and it would tie the dollar's fate
(03:52):
to a volatile, decentralized asset The government doesn't control. Scenario
two Bitcoin as a strategical More likely, the US quietly
adds bitcoin to its balance sheet alongside gold, yen, euros,
and other reserve assets. This could involve direct purchases on
(04:12):
exchanges or over the counter deals. It doesn't replace the dollar,
it doesn't peg the currency. It just hedges the system,
a bet on the future, a backup plan if the
current model cracks. This wouldn't require public approval, massive legislation,
or a total system reboot. It could be done behind
closed doors, and it might already be on the radar.
(04:36):
In this scenario, bitcoin becomes a neutral asset, not money
for the people, not the base layer of a new
financial order, just a tool, a chip on the table
in the geopolitical game. This neutrality is precisely what makes
it appealing to some nations looking to diversify away from
traditional fiat currencies. But it also means it's outside the
(05:00):
direct influence of any single government, including the US. That's
not as revolutionary, but it might be how a revolution begins.
So what does it mean for bitcoin to be a
reserve currency. It depends on the path. Backed reserves would
change everything, how we spend, how we borrow, how we govern.
Held reserves would change nothing immediately, but could quietly rewrite
(05:24):
global strategy over time. Either way, it's a signal that
the old system is fragile, The new tools are on
the table, and that even the most powerful government on
earth might someday need something it can't print. Question two,
Could the US use bitcoin without giving up control? Especially
(05:44):
with interest rates, inflation, and the Federal reserve? Let's say
the US does it. It adds bitcoin to the reserve stack,
maybe even backs the dollar with it. Could it do
that without giving up control? Could the government and still
manage inflation, still guide the economy? Could the Federal Reserve
still pull the levers? Let's break that down. The current
(06:08):
model is structured with control through flexibility. Right now, the
US dollar is backed by nothing but trust, and that's
by design. It gives the Federal Reserve and your total
freedom to respond to crisis, manipulate interest rates, and print
money when needed. It's not always wise, it's not always fair,
but it's extremely powerful. The US controls the dollar, and
(06:32):
the dollar controls the world. Enter Bitcoin and the problem
of hard limits, and Bitcoin flips that model upside down.
There's no central control, there's no printing, and there's no
emergency override. If the US adopts bitcoin in a meaningful way,
especially as backing for the dollar, it's locking itself into
a system it doesn't control. That means no more printing
(06:56):
to cover deficits, no more fine tuning interest rates with
monetary policy, no more inflation as policy tool. That's not
just losing control, that's surrendering the very thing that gives
the US its economic dominance. But what happens to the
FED being blunt If Bitcoin becomes the foundation of US money,
(07:18):
the Federal Reserve becomes obsolete, at least in its current form.
No need for quantitive easing, no need for overnight repo
operations or rate hikes to cool the economy, no closed
door meetings to decide the price of borrowing money. Bitcoin
doesn't negotiate. Its monetary policy is already set forever. That
(07:40):
doesn't mean the FED disappears overnight. It could adapt morph
into a fiscal or regulatory body, But the idea of
managing the economy through money supply that's gone. Could the
US still influence the economy, Yes, but only through fiscal policy, taxes, spending, investment.
(08:00):
But that's slower, messier, and it requires actual legislation. Bitcoin
doesn't allow quick fixes, and that's exactly the poin for bitcoiners.
That's the dream. No more last minute bailouts, no more
endless debt, no more kicking the can. But for a
government addicted to control, it's a nightmare. So could the
(08:20):
US adopt bitcoin without giving up control? Not really, It's
like trying to ride a wild horse and still believe
you're holding the reins. Bitcoin doesn't bend, and that's the
trade off. You can't embrace hard money and keep the
soft power. Question three would a bitcoin reserve benefit or
hurt the US? So let's say the US makes the move,
(08:42):
it adopts bitcoin as part of its reserve system, maybe
even backs the dollar with it. The question now becomes
does that make America stronger or weaker? Does it restore
trust in the currency or does it strip away the
tools we've relied on to manage crisis for the last
hundred years. Let's first go over potential benefits with trust, discipline,
(09:04):
and global credibility. Supporters will say this is exactly what
the US needs. Bitcoin would impose discipline on spending, on debt,
on reckless monetary policy. It would restore trust not just
with citizens, but with foreign governments and global markets. No
more back room money printing, no more inflation needing away
(09:24):
at savings, and wages just hard money, transparent, predictable, and
immune to manipulation. In a world of currency wars in
central bank games, the US would be signaling we don't
play like that anymore. That could potentially elevate the dollar's credibility,
not weaken it. It could attract global investments. It could
(09:44):
force the government to govern within its means. That's the
bitcoin argument. Less control, more trust. Let's look at the
case for harm now with fragility in the face of crisis.
With the other side, a bitcoin reserve strips the US
of its financial flexibility. And that's not just about power,
it's about response. What happens when the next crisis hits,
(10:07):
what happens when unemployment spikes, when a bank run begins,
when a war breaks out. Right now, the FED can
inject liquidity, lower rates, expand credit. It can buy time,
even if it comes at a long term cost. With
bitcoin in the foundation, those levers vanish. The system becomes rigid,
(10:28):
unforgiving cold. That's good in theory, but it's brutal in practice.
If you need help now, could it trigger a crisis
of its own. There's also a risk that adopting bitcoin
too fast, or signaling a loss of confidence in the
current system could backfire, Markets could panic, debts could become unpayable.
Foreign allies might see it not as strength but as desperation.
(10:52):
It's not just about what you do, it's about when
and how fast. So would it help or hurt? That
depends on your definite of strength. If you believe true
strength is discipline, transparency, and long term trust, then yes,
Bitcoin could be powerful asset to anchor the system. But
if you believe strength is flexibility, speed, and the ability
(11:14):
to act in the moment, then it's liability. Because bitcoin
doesn't give second chances, it doesn't print, it doesn't bend.
It just is and that's both its brilliance and its burden.
Bitcoin as a reserve currency isn't just a technical shift.
It's a transformation in philosophy. It asks the US to
give up control in exchange for trust to anchor its
(11:38):
future in something it can't manipulate. Maybe that's scary, Maybe
it's exactly what we need. Until the next episode, Stay curious,
stay grounded. I want to be extremely upfront that I
try my best to leave all of my opinions out
of this. I know this is very condensed and simplified,
but I want you to gain your own understanding and
beliefs and not be persuaded by me. I hope this
(11:58):
helps you gain a better grasp of it. Please remember
to share, follow, and subscribe to our mailing list and
to your favorite podcast app for future episodes. You can
gain more with your crypto knowledge. If this sparks something
in you or made you question what's possible, I'd love
to hear it. And if you found this valuable, share it,
tag someone who needs to hear it or just sit
(12:19):
with it. Thanks for listening. Thanks for listening to this
episode of The Crypto One on one Show. If you
would like to join our email list, email us at
the Crypto One on one Show at gmail dot com
(12:39):
for more helpful tips. Subscribe in your favorite podcast app
and leave a review so that you don't miss our
next episode. See you next time.
Welcome to the Crypto one on one show, where we
dive into the world of cryptocurrencies, bitcoin, blockchain, and all
the technology with it. Whether you're experienced or a beginner
to crypto, our goal is to break down complex concepts
and make it easy for you to understand the basics,
from bitcoin to all coins. We'll cover it all in
a way that's easy to digest and provide listeners with
(00:30):
the knowledge and understanding they need to make informed decisions
and better critical thought. Sit back, relax, and let's simplify
your understanding of cryptocurrencies on the Crypto one on one Show.
(00:51):
The Bitcoin Series, Part sixteen, What if the US adopted
bitcoin as a reserve. I need to start off by
saying this is not financial advice, so if you are
looking for that, the show is in for you. The
content of this podcast episode is for informational purposes only.
The opinions expressed here are not meant to be taken
as financial investment or any other advice. What if the
(01:16):
US added bitcoin to its reserves, not as a gimmick,
not as a hedge, but as a real strategic asset
like gold or foreign currencies. It sounds extreme, but is
it really would it strengthen the dollar or weaken it?
Would it restore trust or unleash chaos. In this episode,
we're asking what a bitcoin back US reserve might actually
(01:39):
look like, what it would change, what it would cost,
and whether a shift like this could ever happen without
tearing something else apart. So let's jump in question one.
What does it even mean for bitcoin to be a
reserve currency? Let's start with the basics. When people say
bitcoin could become a reserve currency, what do they actually
(02:01):
mean Because it sounds huge, like a tectonic shift in
the financial order, but the reality could take many forms,
some subtle, some seismic. With rising national debts, concern about inflation,
and the increasing mainstream adoption of cryptocurrencies, the idea of
bitcoin as a reserve asset is no longer just a
(02:23):
fringe discussion, but a serious consideration for some. So here's
the question. Would the US back the dollar with bitcoin
or would it just hold bitcoin the way it holds
gold or foreign currencies as part of its strategic reserves.
Let's break that down. Scenario one bitcoin back dollar. This
(02:44):
would be a hard break from the current system. The
US could, in theory, peg the dollar to bitcoin. Say
one bitcoin equals x amount of dollars and the government
guarantees convertibility. That's a full blown bitcoin standard, similar to
the gold standard of the past. It would radically limit
(03:04):
money printing, no more federal reserve flipping levers, and flooding
the market with liquidity. The dollar would become a digital
proxy for something the government can't create out of thin air.
Sounds like a bitcoin maximalist dream, but it would be
a policymaker's nightmare. Why because it would strip the US
of its monetary sovereignty. Monetary sovereignty allows a government to
(03:29):
independently manage its economy, control inflation, and stimulate growth during
downturns through tools like interest rates adjustments and quantity of easing.
Giving that up means ceding crucial control over the nation's
economic destiny. It couldn't inflate away debt, it couldn't stimulate
in a crisis, and it would tie the dollar's fate
(03:52):
to a volatile, decentralized asset The government doesn't control. Scenario
two Bitcoin as a strategical More likely, the US quietly
adds bitcoin to its balance sheet alongside gold, yen, euros,
and other reserve assets. This could involve direct purchases on
(04:12):
exchanges or over the counter deals. It doesn't replace the dollar,
it doesn't peg the currency. It just hedges the system,
a bet on the future, a backup plan if the
current model cracks. This wouldn't require public approval, massive legislation,
or a total system reboot. It could be done behind
closed doors, and it might already be on the radar.
(04:36):
In this scenario, bitcoin becomes a neutral asset, not money
for the people, not the base layer of a new
financial order, just a tool, a chip on the table
in the geopolitical game. This neutrality is precisely what makes
it appealing to some nations looking to diversify away from
traditional fiat currencies. But it also means it's outside the
(05:00):
direct influence of any single government, including the US. That's
not as revolutionary, but it might be how a revolution begins.
So what does it mean for bitcoin to be a
reserve currency. It depends on the path. Backed reserves would
change everything, how we spend, how we borrow, how we govern.
Held reserves would change nothing immediately, but could quietly rewrite
(05:24):
global strategy over time. Either way, it's a signal that
the old system is fragile, The new tools are on
the table, and that even the most powerful government on
earth might someday need something it can't print. Question two,
Could the US use bitcoin without giving up control? Especially
(05:44):
with interest rates, inflation, and the Federal reserve? Let's say
the US does it. It adds bitcoin to the reserve stack,
maybe even backs the dollar with it. Could it do
that without giving up control? Could the government and still
manage inflation, still guide the economy? Could the Federal Reserve
still pull the levers? Let's break that down. The current
(06:08):
model is structured with control through flexibility. Right now, the
US dollar is backed by nothing but trust, and that's
by design. It gives the Federal Reserve and your total
freedom to respond to crisis, manipulate interest rates, and print
money when needed. It's not always wise, it's not always fair,
but it's extremely powerful. The US controls the dollar, and
(06:32):
the dollar controls the world. Enter Bitcoin and the problem
of hard limits, and Bitcoin flips that model upside down.
There's no central control, there's no printing, and there's no
emergency override. If the US adopts bitcoin in a meaningful way,
especially as backing for the dollar, it's locking itself into
a system it doesn't control. That means no more printing
(06:56):
to cover deficits, no more fine tuning interest rates with
monetary policy, no more inflation as policy tool. That's not
just losing control, that's surrendering the very thing that gives
the US its economic dominance. But what happens to the
FED being blunt If Bitcoin becomes the foundation of US money,
(07:18):
the Federal Reserve becomes obsolete, at least in its current form.
No need for quantitive easing, no need for overnight repo
operations or rate hikes to cool the economy, no closed
door meetings to decide the price of borrowing money. Bitcoin
doesn't negotiate. Its monetary policy is already set forever. That
(07:40):
doesn't mean the FED disappears overnight. It could adapt morph
into a fiscal or regulatory body, But the idea of
managing the economy through money supply that's gone. Could the
US still influence the economy, Yes, but only through fiscal policy, taxes, spending, investment.
(08:00):
But that's slower, messier, and it requires actual legislation. Bitcoin
doesn't allow quick fixes, and that's exactly the poin for bitcoiners.
That's the dream. No more last minute bailouts, no more
endless debt, no more kicking the can. But for a
government addicted to control, it's a nightmare. So could the
(08:20):
US adopt bitcoin without giving up control? Not really, It's
like trying to ride a wild horse and still believe
you're holding the reins. Bitcoin doesn't bend, and that's the
trade off. You can't embrace hard money and keep the
soft power. Question three would a bitcoin reserve benefit or
hurt the US? So let's say the US makes the move,
(08:42):
it adopts bitcoin as part of its reserve system, maybe
even backs the dollar with it. The question now becomes
does that make America stronger or weaker? Does it restore
trust in the currency or does it strip away the
tools we've relied on to manage crisis for the last
hundred years. Let's first go over potential benefits with trust, discipline,
(09:04):
and global credibility. Supporters will say this is exactly what
the US needs. Bitcoin would impose discipline on spending, on debt,
on reckless monetary policy. It would restore trust not just
with citizens, but with foreign governments and global markets. No
more back room money printing, no more inflation needing away
(09:24):
at savings, and wages just hard money, transparent, predictable, and
immune to manipulation. In a world of currency wars in
central bank games, the US would be signaling we don't
play like that anymore. That could potentially elevate the dollar's credibility,
not weaken it. It could attract global investments. It could
(09:44):
force the government to govern within its means. That's the
bitcoin argument. Less control, more trust. Let's look at the
case for harm now with fragility in the face of crisis.
With the other side, a bitcoin reserve strips the US
of its financial flexibility. And that's not just about power,
it's about response. What happens when the next crisis hits,
(10:07):
what happens when unemployment spikes, when a bank run begins,
when a war breaks out. Right now, the FED can
inject liquidity, lower rates, expand credit. It can buy time,
even if it comes at a long term cost. With
bitcoin in the foundation, those levers vanish. The system becomes rigid,
(10:28):
unforgiving cold. That's good in theory, but it's brutal in practice.
If you need help now, could it trigger a crisis
of its own. There's also a risk that adopting bitcoin
too fast, or signaling a loss of confidence in the
current system could backfire, Markets could panic, debts could become unpayable.
Foreign allies might see it not as strength but as desperation.
(10:52):
It's not just about what you do, it's about when
and how fast. So would it help or hurt? That
depends on your definite of strength. If you believe true
strength is discipline, transparency, and long term trust, then yes,
Bitcoin could be powerful asset to anchor the system. But
if you believe strength is flexibility, speed, and the ability
(11:14):
to act in the moment, then it's liability. Because bitcoin
doesn't give second chances, it doesn't print, it doesn't bend.
It just is and that's both its brilliance and its burden.
Bitcoin as a reserve currency isn't just a technical shift.
It's a transformation in philosophy. It asks the US to
give up control in exchange for trust to anchor its
(11:38):
future in something it can't manipulate. Maybe that's scary, Maybe
it's exactly what we need. Until the next episode, Stay curious,
stay grounded. I want to be extremely upfront that I
try my best to leave all of my opinions out
of this. I know this is very condensed and simplified,
but I want you to gain your own understanding and
beliefs and not be persuaded by me. I hope this
(11:58):
helps you gain a better grasp of it. Please remember
to share, follow, and subscribe to our mailing list and
to your favorite podcast app for future episodes. You can
gain more with your crypto knowledge. If this sparks something
in you or made you question what's possible, I'd love
to hear it. And if you found this valuable, share it,
tag someone who needs to hear it or just sit
(12:19):
with it. Thanks for listening. Thanks for listening to this
episode of The Crypto One on one Show. If you
would like to join our email list, email us at
the Crypto One on one Show at gmail dot com
(12:39):
for more helpful tips. Subscribe in your favorite podcast app
and leave a review so that you don't miss our
next episode. See you next time.
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