Latest / Simply Bitcoin / U.S. Government Reveals $850 Billion Plan To Buy Bitcoin! | Bitcoin Simply
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- 0:00The United States government is sitting on an $850 billion
- 0:04secret. What if they could unlock it
- 0:05without raising taxes, adding debt, or printing a single
- 0:08dollar? And what if they use that war
- 0:10chest to buy Bitcoin? The Federal Reserve just laid
- 0:13out a playbook on exactly how they would do that.
- 0:16It's the same trick that five other countries have already
- 0:19pulled off. We'll talk about the
- 0:20implications of this and Donald Trump's latest executive order,
- 0:23which states that Americans will now be able to use their 401 KS
- 0:27to invest in the Bitcoin. Bad math says that about one
- 0:29point point, $2 trillion in capital are going to flow into
- 0:32Bitcoin from these two things. Not bad.
- 0:34I got a deep cut for us today on a silent U.S. government bailout
- 0:38and more. We got a lot to cover.
- 0:40This is Dante Coke with Bitcoin. Simply, let's go.
- 0:46Trump last night came out and talked about crypto assets being
- 0:49eligible for 4/01 KS. I mean, that's a monster pool of
- 0:52capital. And what we're just seeing is
- 0:55through these treasury companies, through through all
- 0:58the kinds of different avenues, the aperture of being able to
- 1:02buy crypto being widened and widened and widened more avenues
- 1:05bringing people into the tent. I think one of the things that I
- 1:09actually didn't even comprehend is these treasury companies have
- 1:12done so well. The public equity markets are so
- 1:15much bigger than what the crypto markets were.
- 1:18And so as we're really broadening our reach through
- 1:20public equities into our asset class, you're just seeing tons
- 1:24of money pour in. OK, this is a big deal.
- 1:26Donald Trump signed an executive order on Thursday that will
- 1:29allow Americans to invest into Bitcoin with their 401 KS.
- 1:33A lot of people might get this confused.
- 1:35They might say Dante, but we could already buy Bitcoin from
- 1:37Wall Street with ETS. Yes, that's post tax dollars,
- 1:40dollars that you may use to buy Bitcoin in a brokerage account
- 1:44or an IRA, but not with pre tax money.
- 1:46This unlocks a whole new investment.
- 1:48Not only will you be able to contribute a lot more, 23,500 in
- 1:522025 with 401K money, 31,000 if you're over 50, and 69,000 in a
- 1:58solo 401K. As a business owner.
- 2:00These are considered pre tax contributions, but you would
- 2:02always need a fiduciary to sponsor it.
- 2:04This is where the majority of American wealth is.
- 2:07In fact, it's estimated that 8 to $10 trillion worth of assets
- 2:11are sitting in 401 KS. So Bitcoin captured just 5% of
- 2:15this market. Well, that's $400 billion.
- 2:18This is combined with incessant buying from Bitcoin treasury
- 2:21companies which have purchased 545,000 Bitcoin, or 2.5% of the
- 2:26network in 2025 alone. ETF's have bought 360,000
- 2:30Bitcoin, or 1.5% of the network so far this year.
- 2:33There is currently much more buying than there is Bitcoin
- 2:36being made or sold. This is pretty bullish for
- 2:38Bitcoin if you ask me. Grok is super bullish.
- 2:41It thinks because of this, there's going to be a supply
- 2:44squeeze and we're going to end up seeing 175 K Bitcoin or the
- 2:48end of the year. That's not me that said that,
- 2:50Billy, that's the AI. OK, let's go back to the Donald
- 2:53Trump thing for one second. As part of the executive order,
- 2:55it said that Americans will also be able to invest into
- 2:58alternative assets in private equity, assets in real estate.
- 3:01We all know that this is a silent government bailout,
- 3:04right? Private equity right now is in
- 3:06trouble. They're stuck holding a bunch of
- 3:08companies on paper that haven't been able to be marked up and
- 3:12they can't lever them with more debt because of the high
- 3:14interest rates. So they're burning cash right
- 3:16now. So they're offloading them to
- 3:19us. A mini bailout.
- 3:20Congratulations. The same is true not only for
- 3:23private equity and private equity companies, but real
- 3:25estate also, which is owned majority by private equity.
- 3:29The black stones and black rocks of the world own a majority of
- 3:31single family homes in America. And right now there's a lot more
- 3:35selling and buying. In fact, in June there was
- 3:37500,000 more sellers than there were buyers.
- 3:41People can't sell these homes and people can't afford them.
- 3:43That's a deep cut for today. But on to the next story, the
- 3:46big story, the 800 and $50 billion secret that the Federal
- 3:50Reserve just dropped. This might be a budget neutral
- 3:53plan for them to buy Bitcoin and I'll tell you why.
- 3:55No joke, the Federal Reserve released a paper highlighting
- 3:58how they could revalue gold in order to purchase or acquire
- 4:02strategic assets or reduce their debt.
- 4:04They research how this has been done in five other places
- 4:07before, Italy, St. Martin, Germany, South Africa
- 4:11and Lebanon. So here's the deal.
- 4:13Gold is currently valued on their balance sheet at 42 point,
- 4:16$2.00 an ounce. It's currently worth in the
- 4:18market $3300.00 an ounce. So if they own 261 million
- 4:24ounces of gold, well, that means that they have an $850 billion
- 4:28unrealized gain. The paper highlights that
- 4:30there's two things that other countries have already done.
- 4:32Germany in 1997, Lebanon in 2002, in South Africa in 2024,
- 4:37used the sale of strategic assets or the revaluing of
- 4:40strategic assets in order to buy or fund a treasury account.
- 4:44So with no debt issuance, no taxes, they're able to raise
- 4:48money, a budget neutral way to buy Bitcoin.
- 4:50They can sell the gold and immediately rebuy it themselves,
- 4:54giving them a paper gain or income that could be remitted to
- 4:57the Treasury in a similar fashion.
- 4:59St. Martin did this just a few years
- 5:01ago. Don't.
- 5:02Not me saying this is fake. Go read the paper yourself.
- 5:04The interesting thing is that this playbook comes right at the
- 5:06announcement of Stephen Miram joining the Federal Reserve in
- 5:11the empty seat. He's the current chairman of the
- 5:13Council of Economic Affairs, one of Trump's good buddies, and
- 5:17he's been known to be a bitcoiner.
- 5:19Tweeting things like Bitcoin fixes this.
- 5:21Could he be the one putting together our plan in order to
- 5:24buy Bitcoin in a budget neutral way?
- 5:26Gold built the old financial system and Bitcoin will build
- 5:29the next one. So it makes sense that they
- 5:30would revalue gold to buy Bitcoin.
- 5:32It's just a better asset. I mean you can't tariff Bitcoin
- 5:35like they just did with gold to Switzerland.
- 5:38On some of the other big news from today, a lot has certainly
- 5:41happened on this Friday, but one of those is what's going on in
- 5:44the gold market right now. You have the Trump
- 5:46administration ruling that gold bars will be subject to tariffs
- 5:50as well, these reciprocal tariffs.
- 5:52So imports of gold will be tariffed.
- 5:54And that's really sending shock waves through the gold
- 5:58ecosystem. Gold and Bitcoin are often
- 6:00compared to one another. Their Bitcoin called digital
- 6:03gold, for example. I wonder if you think this has
- 6:06any ripple effects, positive or negative for Bitcoin?
- 6:10It it does, Bitcoin is digital gold.
- 6:13It's going to accelerate the migration of capital from
- 6:16physical gold to digital gold. You know, Bitcoin lives in
- 6:20cyberspace. No tariffs in cyberspace.
- 6:23The big appeal of Bitcoin is it's not physical.
- 6:26It doesn't have weight. You can settle anywhere with
- 6:30anybody in a few minutes. And so gold has always been too
- 6:34heavy, too slow, you know, and you can't really ship it across
- 6:38an ocean. And if you do, now you're
- 6:39getting tariffs. So I really think it just
- 6:42reminds everybody why the digital version of gold is
- 6:46better than the than actual physical gold.
- 6:48And, and I think it's going to catalyze a new wave of
- 6:52institutional adoption of Bitcoin.
- 6:54All right, crypto is stateless. It's hard to tariff, Michael.
- 6:57Have to leave it there. Really enjoyed speaking with
- 6:59you, though. That is Strategy executive
- 7:01chairman Michael Saylor. The US government understands
- 7:04that Bitcoin is an incredibly important strategic asset.
- 7:07Natalie Brunel just had a great conversation with the Fox
- 7:10Business team talking about that we're at an inflection point,
- 7:13that Bitcoin is one of the only assets the United States
- 7:16government recognizes to get us out of this deficit that we're
- 7:19in right now. I think we have crossed an
- 7:21inflection point. I think Bitcoin is here to stay
- 7:24and it will be a strategic reserve asset for the country
- 7:27and it does not threaten the US dollar.
- 7:29In fact, they're prioritizing stable coins right now because
- 7:32they want to to extend dollar dominance and provide us with
- 7:35more demand for U.S. Treasury debt because these
- 7:37stable coins have to be backed one, one to one with cash
- 7:40reserves or short term treasuries.
- 7:42That's going to extend the dollar globally.
- 7:44And those stable coins have really helped a lot of people in
- 7:47other nations that face far worse currency crises and far
- 7:50worse inflation that we have here in America.
- 7:52But Bitcoin is going to be that pristine savings, technology and
- 7:55capital that corporations are looking at to put on the balance
- 7:58sheet to strengthen against the debasement that we know is going
- 8:01to come. We know they're going to have to
- 8:02print. We know that the deficits are
- 8:04going to continue. And so Bitcoin is the one thing
- 8:06immune to that. It's the one thing no one can
- 8:07print. And if Bitcoin is the only thing
- 8:09that the government can't print or you can't inflate or
- 8:12manipulate, then why in the heck would you sell it?
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- 8:57slash simply. One other thing is that gold can
- 9:00be confiscated when you go to a border.
- 9:03Try taking gold with you the next time you fly on an
- 9:05airplane. But with Bitcoin, you just have
- 9:07to know or remember 12 or 24 words.
- 9:10That's novel. That gives you sovereignty, that
- 9:12gives you a sense of peace and control.
- 9:14Well, you can only have that piece of control if you actually
- 9:17take self custody of your Bitcoin.
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- 9:41All right, let's finish with the rest of the segment that Natalie
- 9:43had with the Fox Business team. We are so, so early into
- 9:47Bitcoin. And I look at crypto and AI,
- 9:49Natalie, in the same vein. To a certain degree, these are
- 9:52things that President Biden and his administration were shying
- 9:55away from, whereas President Trump is saying they're not
- 9:58going anywhere. I want us to be #1 this.
- 10:00Industry is no longer fringe. It is found innovation we are
- 10:03really reimagining how value is stored and also moved in the
- 10:0721st century and what I'm most happy about is that the White
- 10:10House is actually recognizing that the most important
- 10:13innovation in crypto is Bitcoin. It is the core asset in this new
- 10:18monetary system and they're recognizing things like the
- 10:21essential need for the ability to self custody because that is
- 10:25so in line with the American value of property rights.
- 10:28And the White House report on digital assets this week also
- 10:32said that the the government is looking at plans to accumulate
- 10:35Bitcoin. They even mentioned a term that
- 10:37we have in the Bitcoin space called stacking SAT's, which is
- 10:40slowly accumulating Bitcoin not thinking about the, you know,
- 10:43daily price moves, but slowly accumulating A meaningful amount
- 10:46to serve strategically in our reserve.
- 10:48Quick, before I get to everybody else on this, because you are
- 10:50the expert when it comes to the Trump administration and its
- 10:53strategy. The more ubiquitous you a
- 10:55Bitcoin comes with respect to its usage out there, does it
- 10:59become less likely that the government or the central bank,
- 11:02whatever look to make Bitcoin, you know, its strategic, its
- 11:06currency in that way. Do the are the two things
- 11:09separate? If it becomes mainstream in the
- 11:11way that it is, then you won't use it in that way.
- 11:13Or can they coexist? If we get another president like
- 11:15Joe Biden, can they come back and say, you know what, we're
- 11:18going to get rid of the dollar? I think we have crossed an
- 11:20inflection point. I think Bitcoin is here to stay
- 11:23and it will be a strategic reserve asset for the country
- 11:26and it does not threaten the US dollar.
- 11:28In fact, they're prioritizing stable coins right now because
- 11:31they want to extend dollar dominance and provide us with
- 11:34more demand for U.S. Treasury debt because these
- 11:36stable coins have to be backed one, one to one with cash
- 11:39reserves or short term treasuries.
- 11:41That's going to extend the dollar globally.
- 11:42And those stable coins have really helped a lot of people in
- 11:45other nations that face far worse currency crises and far
- 11:49worse inflation that we have here in America.
- 11:51But Bitcoin is going to be that pristine savings, technology and
- 11:54capital that corporations are looking at to put on the balance
- 11:57sheet to strengthen against the debasement that we know is going
- 11:59to come. We know they're going to have to
- 12:01print. We know that the deficits are
- 12:03going to continue, and so Bitcoin is the one thing immune
- 12:05to that. It's the one thing no one can
- 12:06print. I talk to you all the time.
- 12:08We talk to you, we ask you questions, we learn.
- 12:10I got to say, and I'm embarrassed to say, but I'll be
- 12:12honest with everybody, Gary, I still don't really understand
- 12:15it. So if I really don't understand
- 12:17it, it's hard to get in as an investment.
- 12:18But yet I watch it just keep moving higher and higher and
- 12:21higher. And I'm thinking to myself, if
- 12:23there is not an aspect of My Portfolio that's invested in
- 12:25crypto in some way, I am losing out.
- 12:28You just took the words right out of my mouth.
- 12:31I've been saying since day one, I don't understand.
- 12:34I don't know what the meaning of it is.
- 12:36All I can tell you is as an asset, the price has just been
- 12:39going up, up and up, yet had a 75% drop in the last bear
- 12:44market. I'm thinking that's it, it's
- 12:45over and right back. But I do worry the next bear
- 12:50market in the NASDAQ that it's going to come down because it is
- 12:54an asset and the fear and greed factor.
- 12:57I what I don't understand when I hear, I think it's sailor that
- 13:01says it's going to 13 million in price.
- 13:03These are the things I don't understand.
- 13:05But look, I've watched you on TV for a while with big smile on
- 13:10your face and you've been right as rain.
- 13:11I can't argue the point. I never argue against price.
- 13:14Can I just say two things? Number one, Bitcoin priced in
- 13:17the S&P 500. The S&P is down 85% price in
- 13:20Bitcoin. You're super early.
- 13:22We're all very early to Bitcoin. And I say that because it is a
- 13:24$2 trillion market cap competing with equities, bonds, gold, real
- 13:30estate, which are hundreds of trillions of dollars of wealth.
- 13:33If we just reached 20 trillion, which is gold, that's over
- 13:35$1,000,000 for Bitcoin. But there's no earnings, no
- 13:38sales, no product and. Service feature, not a bug.
- 13:41Look at the Terrier plant. No chairman of the Fed, no CEO,
- 13:45no earnings. 30 seconds. You're winning.
- 13:46Most people don't even understand Bitcoin, but they're
- 13:49starting to recognize for people that don't understand it, that's
- 13:53your alpha. Michael Saylor says.
- 13:54Buy something that everybody needs.
- 13:56No one can stop and most people don't know about right now.
- 13:59We're still so early here. There's so much room to go and
- 14:03to grow. We've got people like Matt
- 14:04Hogan, the CIO of Bitwise, talking to countries about
- 14:08buying Bitcoin these days. I I think it's the same growth
- 14:10curve, just at different phases. It's a, it's an exponential
- 14:13growth curve. It's just that the, the, the
- 14:17sort of bank wirehouse institutional curve is so far
- 14:22down that now the doubling is very visible, right?
- 14:25Like we've we've seen a steady acceleration.
- 14:27We're past the hockey stick point.
- 14:29I think nation states are moving in that direction, right?
- 14:33It's not just El Salvador now we had Pakistan a little while ago.
- 14:38We have bit wise multiple sovereigns.
- 14:41We had Abu Dhabi, we've had a few others.
- 14:44I think it's moving in the right direction.
- 14:46We're just earlier in the doubling phase.
- 14:49But you know, look, I, I think if the US actually buys Bitcoin,
- 14:54I can't imagine what that does to the price or to the game
- 14:58theory of other companies, countries moving into the space.
- 15:01I, I think it would be, I don't think that's priced into the
- 15:05market at all. Keep things simple.
- 15:07Here's a simple thesis. Gold, which was hard money for
- 15:10the past several thousand years, outperformed the SP 500 by
- 15:14almost double over the last 25 years.
- 15:17And that's because it's a scarce asset that's measured in a
- 15:20debasing currency. Well, Bitcoin is they new
- 15:23digital gold, the gold for the 21st century and beyond.
- 15:26It's more scarce and it's actually built for the modern
- 15:30world and society that we're moving towards.
- 15:32Don't overcomplicate the trade. Even gas stations like Sheets
- 15:36are willing to give you up to 50% off of certain goods by
- 15:39paying in Bitcoin. That means they think it's
- 15:41valuable. Times are hard, employment is
- 15:43plummeting, prices are rising. What are you using to protect
- 15:46yourself and your family? The best answer is Bitcoin
- 15:49front. Run the government front run all
- 15:51of these 401K providers in getting into Bitcoin.
- 15:54We're going to see about $1.2 trillion worth of capital flow
- 15:57into this asset class from these two things alone.
- 16:00Don't over complicate the trade. One of the ways that you can
- 16:02stay sane and not over complicate things in bull
- 16:04markets where you have rips and roars and crashes is by
- 16:07connecting with bit corners in real life.
- 16:09You'll tend to see that the bit corners in real life are as calm
- 16:12and cool as the other side of the pillow when you meet them in
- 16:14person. Don't miss your chance to come
- 16:16meet a bunch of bit corners in person at the largest mining
- 16:18Expo in Dallas, TX from November 11th through November 13th.
- 16:22Mining Disrupt is a conference that you won't want to miss.
- 16:25Get 20% off by using the promo code Simply Bitcoin.
- 16:28I hope you got some value out of today's episode.
- 16:30This is Dante Coke with Bitcoin Simply.