Potential Bitcoin Surge Discussed in Bitcoin Policy Hour
In the recent episode of the ‘Bitcoin Policy Hour,’ a weekly podcast from the nonprofit Bitcoin Policy Institute (BPI), key officials from the organization examined how a significant policy decision from the U.S. government could lead to remarkable increases in Bitcoin’s price.
Matthew Pines, Executive Director, noted that since 1973, when the global financial system shifted away from a complete gold standard, the monetary framework has largely remained unchanged despite experiencing various crises and adaptations. He highlighted that the emergence of nations like China as major industrial, military, and financial powers is starting to undermine the longstanding stability of the dollar-based system.
Zach Shapiro, Head of Policy, pointed out that the growing distrust in the U.S. dollar and treasury securities has led to discussions about alternative reserve assets, with gold being a primary contender. He explained that after the U.S. froze Russian treasury reserves last year, many central banks have begun accumulating gold, leading to speculation that Bitcoin could potentially fulfill or enhance gold’s traditional role—especially if the Trump administration announces its first Bitcoin acquisition.
Shapiro elaborated on a proposed policy of “marking gold to market” to fund Bitcoin purchases, suggesting that officially adjusting the U.S. gold price—currently set around $42 per ounce, while the market price is above $3,200—could generate a considerable surplus in Treasury. He acknowledged the idea’s potential impact but questioned the timing and rationale for such a move.
Pines noted the broader global consequences of such policies, stating that gold certificates play a crucial role in the strategic dynamics of U.S.-China relations, which include trade tensions and technological restrictions. He commented on a White House executive order from March that established a Strategic Bitcoin Reserve and mandated agencies to audit their Bitcoin holdings, asserting the administration’s recognition of Bitcoin as ‘digital gold.’
Although the executive order called for budget-neutral methods to procure more Bitcoin, no agency has yet clarified specific plans. Both Pines and Shapiro indicated that internal discussions and differing interpretations of “budget neutral” could delay actions. Shapiro noted that solutions like tariffs and divesting government assets could help acquire Bitcoin without impacting other budget areas. Should the Trump administration proceed with purchasing Bitcoin, the implications for its price could be substantial, with Shapiro predicting it could lead to Bitcoin’s value dramatically rising, possibly reaching a million dollars per coin amid possible geopolitical shifts.
