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I posted on this before...

It is a brilliant way to default on the national debt with admitting you are defaulting on the national debt.

Here is how it works:

—Make foreign holders of US debt accept Bitcoin as payment when they seek to redeem the debt
—Have an army of propagandists convince them it is a great deal

Easy Peasy!

You have it backwards. People hold bitcoin and spend fiat currency because people want to get rid of crap money while holding stronger currency. We're not going to give away our bitcoin. Instead Trump will establish the reserve in a big way (he doesn't do stuff like this in half measures); then as BTC rises amidst the tightened supply, the increase in the balance sheet of the USG will prove it to be a huge bonanza for the federal government.

If Trump goes big enough with this we could see trillions in the national debt eliminated by the effects of taking a big position in crypto and then holding it, forcing prices higher with tightened supplies. (And then higher as some of the states and other nations that have been talking about this jump in). The USG would then enjoy better terms refinancing remaining debt due to the improved balance sheet.

And if DOGE can't win the battle against the Dems/bureaucrats and continued government spending does destroy the value of the dollar, the USG will be holding the asset that will replace dollars, since it's not like we are going to adopt Chinese currency or the Euro in that scenario. So a crypto reserve is a critical move from a number of angles.

Creating a market for a widely accepted hypothesis.
A few steps away from buying and selling commodity futures.
Perhaps, just as with other kinds of Options, there is always the possible (urgent!) Margin Call, that nobody wants to receive.

At present, I don’t think any of the Cryptocurrencies are backed by the FDIC. So, there’s that.