{"id":79790,"date":"2025-01-24T07:28:28","date_gmt":"2025-01-24T07:28:28","guid":{"rendered":"https:\/\/www.taxresearch.org.uk\/Blog\/?p=79790"},"modified":"2025-01-24T08:33:48","modified_gmt":"2025-01-24T08:33:48","slug":"the-bitcoin-bubble-is-being-hyped","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2025\/01\/24\/the-bitcoin-bubble-is-being-hyped\/","title":{"rendered":"The Bitcoin bubble is being hyped"},"content":{"rendered":"

The right-wing is really having a field day. This comes from a press release from wealth adviser De Vere:<\/p>\n

The Trump administration\u2019s exploration of the creation of a national Strategic Bitcoin Reserve (SBR) signals the dawn of a global \u201ccrypto arms race,\u201d predicts global financial giant\u00a0deVere Group<\/a>.<\/p>\n

The bullish prediction from the CEO, Nigel Green, comes after President Donald Trump announced on Thursday that his administration will evaluate whether to create a \u201cnational digital asset stockpile\u201d, although his executive order fell short of creating a Strategic Bitcoin Reserve outright.<\/p><\/blockquote>\n

Green can hardly\u00a0 contain his excitement, saying:<\/p>\n

We believe that the US\u2019s Strategic Bitcoin Reserve is not just a possibility but an inevitability\u2014one that would be expected to set off a cascade of similar policies worldwide.<\/p>\n

This could be the beginning of a fundamental shift in how wealth and power are stored and protected. Countries around the world would then be \u2013 if they\u2019re not already, as reports suggest - racing to acquire Bitcoin in anticipation of its role as a cornerstone of a new global financial order.<\/p><\/blockquote>\n

And then they note:<\/p>\n

The concept of a Strategic Bitcoin Reserve is grounded in logic that echoes the role of gold in central banks.<\/p>\n

Bitcoin\u2019s capped supply of 21 million ensures scarcity, making it resistant to the inflationary pressures that plague fiat currencies. For the US, an SBR could serve as a hedge against currency devaluation while potentially appreciating in value to help reduce national debt.<\/p><\/blockquote>\n

The madness goes on:<\/p>\n

The deVere CEO continues: \u201cBitcoin\u2019s ability to protect wealth against inflation is, many believe, unparalleled. By holding it as a reserve, the US not only shields its economy but also positions itself as a leader in the new financial era. This policy could be too strategically sound to ignore.\u201d<\/p>\n

Should the US formally adopt an SBR, it will act as a catalyst for other nations. Other economies, as well as major players like China and Russia, are likely to accelerate their Bitcoin accumulation strategies to avoid being left behind.<\/p>\n

\u201cThis arms race would reshape global monetary systems, with countries vying to secure digital assets just as they did with gold,\u201d explains Nigel Green.<\/p>\n

\u201cNo major nation can afford to be sidelined in the digital economy. A world where states compete for cryptocurrency reserves would likely redefine the balance of economic power.\u201d<\/p><\/blockquote>\n

I note all this for a simple reason: it reveals the economic madness gripping some as a consequence of Trump's return.<\/p>\n

The gold standard and the inability to produce the credit required by a failing economy in the 1930s resulted in one of the worst economic eras in modern history and led to war.<\/p>\n

Gold was not the basis for prosperity. The pretence that it had value by limiting the money supply delivered local economic destruction.<\/p>\n

The idea that Bitcoin will hedge against inflation when its value swings so wildly is absurd and transparently wrong.<\/p>\n

So, what is really happening here? This is economic FOMO - or the 'fear of missing out'. That is patently obvious in this sales pitch. The argument is:<\/p>\n