Cryptocurrency Governance Model

Over $36 trillion in U.S. debt, while the U.S. GDP growth in 2024 is only 1.42 trillion dollars! The interest payments on U.S. debt exceed 1 trillion dollars, and in the future, it will definitely become insolvent. So, how should it be paid?

The dominance of the US dollar has gradually declined over the past decade. Asia has introduced the BRICS countries, and small nations like El Salvador have no good options other than pegging BTC as legal tender. The European Union also has a unified currency settlement system—the euro.

How long can the influence of the “Dollar Tide” last in the future? Over the past four years, the Federal Reserve’s rate hikes have caused severe global economic downturns. Countries like Japan, South Korea, Sri Lanka, Brazil, Argentina, and Nigeria have experienced currency devaluations exceeding 25%, with some over 40%. Sri Lanka even went bankrupt. This is arguably the most serious in history. So, what will the global economic landscape look like in the future, and what will it rely on to dominate the world?

Trump will officially take over power on January 20, 2025. In the next four years, what will he rely on to lead the United States back to the position of the world’s top leader? Reinforce the status of the global financial core? Based on his current policies, it will definitely be: the crypto governance model!

Next, let’s analyze in detail how this nearly 70-year-old man is currently using his【Eight-Step Strategy】to officially launch his crypto governance model.

Step 1: Establish Bitcoin as a strategic reserve currency for the country

Determine Bitcoin’s status.

During his campaign, he proposed to vigorously support cryptocurrencies. After successfully being elected on November 6, 2024, he quickly fulfilled many promises.

First: Make BTC a strategic reserve currency for the country. Its value is equivalent to gold. In the past 50 years of the global financial system, only gold and the US dollar have served as strategic reserve currencies.

Second: Connect traditional major US banks to accept Bitcoin as collateral for dollar loans. Think about it from another perspective: in your village, besides real estate and cars, what else can you use as collateral to borrow money from banks?

Third: The Treasury Department will purchase over 1 million BTC in the next five years. This is not just talk but actual action. No matter how good the plans are, nothing beats buying 1 million BTC directly. Leading by example, even if all Bitcoin is mined in the future, the actual circulating supply will likely be less than 18 million, with many permanently lost. So, 1 million BTC accounts for about 5.6%.

Step 2: Legally safeguard with the “Bitcoin Rights Act”

This detailed content was analyzed and shared in my previous article “Bitcoin Rights Act,” which was officially passed! It includes detailed analysis and personal insights.

The passage of this act has very important significance:

1. Ensures the safety of assets for all entering users.

2. Legal compliance can bring more capital, potentially pushing BTC’s price higher. As I mentioned before, a series of measures could push BTC’s price close to $250,000.

3. It is also a crucial step in Bitcoin’s historical development, indirectly signaling to many previous opponents that legalization has begun. Morocco is a typical example: six years ago, it banned Bitcoin, but just a few days ago, it started legalizing it.

Step 3: Dismissal and replacement of SEC Chairman

Dismiss the current SEC Chairman: Trump has publicly expressed dissatisfaction with the current Securities and Exchange Commission (SEC) Chairman Gary Gensler multiple times. He criticizes Gensler’s strict regulation of the crypto industry, claiming that this enforcement stifles America’s potential for crypto innovation and damages the country’s global competitiveness.

For a long time, Gensler-led SEC has taken strict legal actions against many crypto exchanges and projects, classifying crypto assets as securities and imposing strict regulations.

Additionally, on November 10, Trump hinted in a tweet that he might bypass the traditional Senate confirmation process by appointing the next SEC chairman during Senate recess. He also mentioned working with the Senate majority leader to push for recess appointments to “immediately” fill key positions. According to the U.S. Constitution, recess appointments allow the president to appoint temporarily during Senate recess, valid until the end of the next Senate session.

Step 4: The “Crypto Map” of Trump’s new government members

U.S. President-elect Trump nominated three key cabinet candidates, who will oversee the Treasury Department, Commerce Department, and SEC. These candidates are generally considered friendly toward cryptocurrencies and recognize the inevitability of digital assets in modern finance. Their nominations are expected to promote further integration of cryptocurrencies into the U.S. economy. Meanwhile, core members in key positions of the new government are supporters of cryptocurrencies, reflecting Trump’s team’s attitude toward talent selection.

Vice President J.D. Vance: Holds tens of thousands of dollars worth of Bitcoin, supports crypto

Treasury Secretary Scott Bessent: Former key member of Soros’s team, publicly supports Bitcoin and the crypto economy

National Security Advisor Michael Waltz: Holds less than $10,000 in Bitcoin, promotes crypto-friendly policies

Director of National Intelligence Tulsi Gabbard: Holds small amounts of Litecoin and Ethereum, opposes government push for CBDC

Deputy Leader of the Department of Efficiency Elon Musk: Supporter of Bitcoin and Dogecoin

The strategic layout is complete: at that time, Bitcoin as digital gold may evolve into a DeFi revival. The digitization of the U.S. financial economy could make crypto applications the biggest winner of this election, and this shift might also force other countries and regions to accept cryptocurrencies, accelerating their global adoption. In the scenario of DeFi revival, Ethereum may catch up quickly.

Step 5: Establish a dedicated management department D.O.G.E

— Strengthening the regime

This plan, called【Government Efficiency Department】(abbreviated as D.O.G.E.), has initials identical to Elon Musk’s favorite cryptocurrency, Dogecoin. According to the elected president Donald Trump: this plan will cut unnecessary regulations, reduce wasteful spending, and reorganize federal agencies.

DOGE is a plan that the U.S. government is about to launch. Trump stated in a release: “Elon Musk and Vivek Ramaswamy will jointly pave the way for my government to dismantle bureaucracies, cut unnecessary regulations, reduce wasteful spending, and reorganize federal agencies—crucial for the ‘Save America’ movement.”

Trump also pointed out that this project will last until “no later than July 4, 2026,” the 250th anniversary of the Declaration of Independence.

What exactly will DOGE do? Who will manage DOGE?

Who will manage DOGE? Billionaire Elon Musk and Vivek Ramaswamy will lead the Department of Efficiency. According to Musk’s tweet on Thursday, neither will be paid for this work.

Trump said: DOGE’s responsibility is to provide advice and guidance on reducing government regulation and spending through reports, thereby streamlining the U.S. government.

Musk suggested: cut federal spending by $2 million, accounting for one-third of the total U.S. federal budget. Meanwhile, Ramaswamy said he hopes to reduce the number of federal government employees by 75%, though the impact on the budget remains unclear.

Step 6: Global talent and strategic deployment

Trump plans to establish a Cryptocurrency Advisory Committee under the White House National Economic Council, responsible for coordinating all crypto-related matters, including promised legislation and Bitcoin strategic reserves. Major players like Coinbase, Circle, a16z are all vying for roles. The “Crypto Advisory Committee” is expected to establish the promised Bitcoin reserves. The U.S. strategic reserve is imperative, and at least European countries will follow suit, so don’t sell your Bitcoin holdings.

Step 7: Rally allies and accelerate promotion

Global legalization and compliance of Bitcoin.

I previously analyzed the progress of global Bitcoin legalization: Bitcoin【BTC】as a national reserve currency, first proposed in legislation.

In the 25 days since Trump’s successful election, more and more countries have started to treat Bitcoin as a national strategic reserve currency or have legalized it. This is a strategic layout and the beginning of global Bitcoin finance.

Currently, allies like Brazil and New Zealand have also announced plans to adopt Bitcoin as a national strategic reserve currency.

Step 8: Backing by top capital to massively increase BTC holdings

Behind political claims is wealth, and behind wealth are people. New industry interest groups led by Musk are not afraid of the collapse of the dollar. The dollar is just a symbol attached to advanced productivity. Replacing it with #Bitcoin, $DOGE , or $Trump makes no difference. So, who benefits from Trump’s rise? No need to say more! Focus on core assets that can continuously create value. You will thank yourself in this bull market!

MicroStrategy, BlackRock, Fidelity, and others continue to increase their Bitcoin holdings regardless of price.

Currently, publicly available data shows BlackRock has bought nearly 500,000 BTC, making it the largest ETF institution. The total holdings of Bitcoin spot ETFs are close to 1.2 million BTC. In the previous cycle, the only major institution, Grayscale, held at most 580,000 BTC. This shows the buying strength of institutions in this round. Meanwhile, MicroStrategy has purchased 386,000 BTC, with plans to add another $42 billion worth of BTC in the future. This is publicly known. MicroStrategy’s off-market leverage of $42 billion to buy BTC could become a target for Wall Street capital attacks.

Based on this pace and buying intensity, the total market value of Bitcoin spot ETFs by 2025 will at least triple, exceeding $300 billion. With MicroStrategy and other major companies’ purchases, it’s likely to hold over 800,000 BTC. This will inevitably cause a problem: reduced liquidity of Bitcoin, pushing the price higher. Whether it reaches $250,000 or $350,000, I think both are possible. When market sentiment is in place, no one can predict accurately.

I believe Trump’s purpose in doing this includes at least three points:

1. To further consolidate the dollar’s position to some extent.

2. To potentially resolve the US debt crisis through BTC in the next decade.

3. To continue building a global financial system led by Wall Street, strengthening America’s global financial status.

What are the possible impacts of Trump’s policies on the future market?

(1) Changes in the regulatory environment

(2) Boost in crypto investment sentiment

(3) Return of Bitcoin mining and related industries to the U.S.

(4) Accelerate traditional financial institutions’布局 into crypto

(5) Changes in the global cryptocurrency industry competitive landscape

In summary: I believe Trump’s “Eight-Step Strategy” from legislation to new government and talent deployment, and to global crypto promotion, marks an important milestone in Bitcoin’s development. The crypto governance model is officially launched. In the short term, combined with this bull market, it could push Bitcoin to heights many people didn’t expect, making it meaningful and valuable. In the long run, the next five years could see Bitcoin breaking through 1 million USDT per coin, which is already on the agenda. Keep going! Trump, I want to sell my BTC above 250,000 USDT. I support your policies!!!