The $768 billion Bitcoin bet: could gold revaluation trigger a crypto surge?
The $768 billion Bitcoin bet
A newly reintroduced bill in the US Congress has sparked considerable interest by proposing the establishment of a Strategic Bitcoin Reserve, funded not by taxpayer dollars, but by revaluing America’s gold reserves. This could have a seismic impact on both gold and Bitcoin prices, with Bitcoin surging over $700,000.
What the Bill Proposes
At the heart of the proposal is the idea to have the Federal Reserve return all existing gold certificates to the US Treasury. These reflect the gold's legal value of $42 per ounce. In return, the Treasury would issue new certificates against the current market price of gold (over $3k per ounce).
This revaluation would instantly create a paper profit of $768 billion, which the Treasury could use, without borrowing or direct taxation, to purchase Bitcoin.
Balancing the Books
To ensure this process is balance-sheet neutral, the Federal Reserve would print the difference in value between the old and new certificates and transfer it to the Treasury. This mirrors the logic of the much-discussed "trillion-dollar platinum coin" strategy. It's essentially money creation through revaluation.
How Much Bitcoin Could the US Buy?
According to the bill, the US aims to acquire 1 million Bitcoins over five years, approximately 5% of all Bitcoins that will ever exist. Based on the $768 billion generated from gold revaluation:
$768 billion / 1 million BTC = $768,000 per Bitcoin
That means the government could, in theory, drive the price of Bitcoin up to this level and still complete its purchase plan.
What About Inflation?
Though the bill is labelled "budget-neutral", critics point out that this still amounts to money printing, which could have inflationary effects. The influx of liquidity would benefit asset holders (especially Bitcoin and gold), while potentially eroding the purchasing power of wage earners and savers.
Gold: A Silent Beneficiary?
Although the revaluation is an accounting exercise, the massive money creation it enables could boost the price of gold. Gold tends to rise in inflationary environments, and a $768 billion cash injection would likely push inflation expectations higher.
Final Thoughts
This bill, while still only a proposal (please keep this in mind), could dramatically shift the landscape for Bitcoin and gold. If passed, it would:
Legitimise Bitcoin as a strategic reserve asset
Fundamentally revalue America's gold holdings
Unleash significant inflationary pressures
It would also signal a monetary policy turning point: one where value is declared into existence, not earned or saved. In such a world, holding hard assets becomes not just smart, but essential. If this passes, you know what to do.
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Disclaimer: This is not financial advice. Always do your own research.