Robert Kennedy Jr.’s unveiling of an ambitious financial policy plan during the industry day of the annual Bitcoin conference in Nashville, Tennessee has sparked a conversation about transforming the United States into the world’s largest holder of Bitcoin. With a focus on strategically acquiring Bitcoin to match the current US gold reserves, Kennedy Jr. aims to redefine monetary policy and enhance fiscal discipline within the federal government. This move reflects a philosophical alignment between his policies and the ideals of personal freedom, property rights, and governmental integrity within the Bitcoin community.
Kennedy Jr. emphasizes that his plan is about more than just increasing the size of one’s financial holdings. He underscores Bitcoin’s potential to enhance self-sovereignty and counteract what he describes as a “destructive war economy” driven by fiat currency. By advocating for Bitcoin, Kennedy Jr. believes that it is a way to restore integrity to the government, protect personal freedoms, and allow the middle class to isolate itself from the effects of inflation, which he views as a form of government theft.
Contrasts with Trump Administration
Notably, Kennedy Jr. draws a contrast between his consistent advocacy for Bitcoin and the recent gestures from former President Donald Trump, who is scheduled to speak at the conference. Kennedy points out Trump’s prior skepticism towards Bitcoin and his controversial decision to potentially appoint JPMorgan CEO Jamie Dimon as Treasury Secretary. He criticizes this move as contrary to the ethos of draining the political “swamp.” Kennedy also highlights Trump’s connections with Steve Mnuchin, who attempted to end person-to-person Bitcoin transactions, suggesting that caution is warranted regarding Trump’s newfound enthusiasm for Bitcoin.
Furthermore, Kennedy Jr. details his plan to incrementally integrate Bitcoin into the US treasury. By starting with the issuance of treasury bills anchored to a basket of hard currencies, including platinum and gold, Kennedy proposes a phased approach. This approach would involve beginning with 1% of new treasury issuances backed by these hard assets, scaling up to 100% over time. His strategy would also involve direct purchases of Bitcoin to achieve holdings equivalent to the US gold reserves, stating that Bitcoin is an honest currency based on proof of work.
According to data by Arkham, the US government currently holds 213,239 BTC confiscated through law enforcement, worth $14.3 billion. Even if Kennedy were to transfer all of these into a strategic reserve, the US would still need to buy a significant amount of BTC at current prices to match the value of its gold reserves. To match the US gold reserves value with Bitcoin would require purchasing about 9.4 million BTC, representing nearly 45% of the total 21 million BTC that will ever be mined. For perspective, MicroStrategy, the largest corporate holder of Bitcoin, owns 226,331 BTC, and BlackRock, the largest spot Bitcoin ETF manager, controls 334,000 BTC. At the time of writing, BTC traded at $66,976.
Robert Kennedy Jr.’s bold Bitcoin policy plan has the potential to have a ripple effect on monetary policy and financial discipline in the United States. By advocating for the strategic acquisition of Bitcoin to match the current US gold reserves, Kennedy Jr. aims to align governmental policies with the ethos of individual freedom and integrity. While there are challenges associated with acquiring such a significant amount of Bitcoin, the proposal opens up a new conversation about the role of cryptocurrency in shaping the future of the US economy.