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Part 1: Introduction: Decoding Trump's Strategy - Digital Asset Revolution

President Trump's recent statements and strategic appointments show that he intends to integrate Bitcoin and US dollar stablecoins into the U.S. financial and In the security system. Although Newton has not yet officially taken office, the composition of its advisory team and the public stance of key appointees show a strong intention to reshape the U.S. digital asset strategy, which could redefine the global financial landscape.

This emerging strategy also seems to be closely in line with Trump's "America First" philosophy. The focus is on leveraging currency innovations such as Bitcoin, a decentralized storage tool for value and stablecoins pegged to the US dollar, to consolidate U.S. global dominance, strengthen U.S. economic sovereignty, and to alleviate inherent fragility in fiat currency economic system sex. By focusing on these technologies, the new seems to be seeking to modernize the financial system while responding to external threats from hostile economic strategies such as Russia.

For example, Trump's recent remarks about Bitcoin protecting U.S. wealth, and his opposition to central bank digital currency (CBDC), suggests his sphere of digital assets Have a deep understanding.

Similarly, the appointment of Howard Lutnick as Secretary of Commerce and David Sacks as Head of Artificial Intelligence and Digital Assets highlights the response to the introduction of Bitcoin and The challenge of integrating stablecoins into the challenge.

Overall, we believe this strategy represents the use of bitcoin and stablecoins as tools to ensure the U.S. leadership in the rapidly changing financial landscape. We believe that this strategy is not only a technological adaptation, but also a response to the systemic vulnerability of the fiat currency system, aiming to maintain the United States' position as the dominant force in the global economy in the digital age.

This article explores key elements of this strategy, including positions, statements and appointments, revealing how Trump intersects monetary innovation, security and economic sovereignty Navigate to the location.

Part 2: The fragility of the fiat currency system

Understanding TrumpFor emerging digital asset strategies, we must first examine the systemic vulnerabilities it is trying to address. The fiat currency system—with the US dollar as the global reserve currency as its core—has been the cornerstone of international finance for decades. However, in the face of evolving geographic and economic challenges, this system is increasingly showing its vulnerability.

This chapter discusses the key shortcomings of the fiat currency system, focusing on three aspects: the difference between internal and external currencies, the economic consequences of the overvalued US dollar, and the special The inherent contradiction between the Riefen puzzle and the "overprivileges". These basic concepts provide context for the emergence of Bitcoin and US dollar stablecoins as potential solutions.

a. Internal and external currencies: a transformation of concepts

The global financial system can be passed Two basic concepts to understand: internal currency and external currency. These terms are proposed by the field of macroeconomics and promoted by financial analysts such as Zoltan Pozsar to distinguish between the types of assets underpinning the monetary system and their associated risks and functions.

What is an internal currency?

Internal currency refers to assets that exist in the traditional financial system and is also the liability of others. For example:

Bank deposit: Your deposit in the bank is your asset, but it is a liability of the bank. The bank owes you this money.

U.S. Treasury bonds: These are the assets of investors (individual, corporate or foreign) but are liabilities of the United States. Bond holders pay interest and principal.

The word "internal" is used because these assets operate within the financial system—that is, they are with entities (e.g., banks , institutional investors, companies and individuals) have close relationships and obligations. Their value depends on trust in the issuer and its ability to fulfill its liabilities.

Characteristics of internal currency

Interrelated liabilities: The value of internal currency depends on issuance Solvency and stability of the entity of the asset. For example, if a bank goes bankrupt, depositors may lose their assets.

Centralized control: creation and supervision of internal currencyOccurs within a centralized framework managed by , central banks or financial institutions.

and economic risks: Internal currency is affected by decision-making (such as sanctions, asset freezes) and economic (such as inflation, depreciation) .

What is an external currency?

In contrast, external currencies are composed of assets independent of any liabilities within the financial system. These include:

Gold: a tangible, generally recognized value storage tool that, if self-hosted, has no opponent's risk.

Bitcoin: a decentralized digital asset with limited supply and no dependence on or financial institutions.

The term "external" reflects the fact that these assets exist outside the financial system—their value does not depend on the opponent's solvency or specific institutions stability. They are often referred to as "non-currency" because their value is not directly affected by any single or organizational or action.

Characteristics of external currency

No counterparty risk: The value of external currency is inherent , based on its scarcity and perceived utility. It does not depend on the debtor's ability to repay.

Decentralization and independence: External currencies are not controlled by central institutions, providing a certain degree of financial sovereignty.

Resistance Welfare: Unlike internal currencies, external currencies remain safe when geographic tensions or institution failures.

Why distinguish between "internal" and "external"?

The two terms "internal" and "external" originate from the concept of boundaries within the financial system:

Internal currencies are created, held and operated within established finance and systems. It relies on the rules, trust, and stability of entities within these boundaries.

External currencies exist outside these boundaries. Its value andUtility is independent of the rules, trust or stability of the system.

In practice, "internal" refers to liabilities and claims circulating within the financial ecosystem (banks, and institutions), while "external" refers to It is an asset that is not affected by these systemic dependencies.

Why is this distinction important?

Distinguishing between internal and external currencies becomes particularly important during times of financial instability or geopolitical tension. When trust in internal currencies weakens—whether due to inflation, defaults or intervention—external currencies are often favored as a safer and more reliable tool for store of value. This dynamic was clearly reflected when Russia's foreign exchange reserves were frozen in 2022, when trust in internal currencies as non- and stable assets was broken, prompting a global re-evaluation of reserve strategies.

Understanding this framework helps explain why external currencies like gold and Bitcoin are gaining increasing attention, as institutions and individuals are seeking to Financial instruments that provide resilience and sovereignty in an increasingly turbulent world.

This distinction regained attention in the analysis of the Bretton Woods III published by Zoltan Pozsar in March 2022. Pozsar highlights how geopolitical shocks triggered by Ukraine’s conflicts have exposed the vulnerability of internal currencies. When the G7 freezes Russia’s foreign exchange reserves – the cornerstone of the global financial system – it reveals a key loophole: long regarded as stable and non-internal currencies that can be weaponized in geopolitical disputes.

This unprecedented behavior weakens countries' trust in the reliability of fiat currency reserves and catalyzes the re-evaluation of global reserve strategies. This confiscation shows that even large-scale internal currency holdings cannot be immune to risks, and this awareness has prompted central banks to turn to external currencies.

The central bank's response: Turning to external currencies

The global re-evaluation of the fiat currency system is not a stop On the theoretical level - it is reflected in the practical actions of central banks around the world, especially in Russia, etc.

These strategies indicate that central banks are intentionally turning to external currencies to hedge against the fragility of the internal monetary system of fiat currencies.

1.: Dual strategy of gold and central bank digital currency

The People's Bank of China (PBOC) has been diversifying its reserves and reducing its efforts to the United States The frontier of debt dependence. Key measures include:

Accelerating gold accumulation: In 2023 alone, more than 100 tons of gold reserves have been added, continuing its years of strategy to reduce dependence on dollar-denominated assets. Gold, as a tangible, non-value store tool, protects the financial system from fiat currency risks and geopolitical pressures.

Integrate digital RMB through MBridge: In addition to gold, it also strategically utilizes its central bank digital currency (CBDC), namely digital RMB (e-CNY), to reduce its dependence on the US dollar.

MBridge Initiative: Through cooperation with Hong Kong, Thailand, the UAE and the Innovation Center of the Bank for International Settlements, the MBridge project has established a blockchain-based cross-border payment platform for settlement using CBDC .

MBridge bypasses the SWIFT system and reduces dependence on U.S.-controlled financial infrastructure.

It promotes the digital RMB as a regional settlement currency, embeds it into trade flows, and consolidates its role in the multipolar financial ecosystem.

The initiative ensures transaction autonomy of participating countries and protects them from geoweaponization of payment systems.

by integrating gold reserves with the operation of digital RMB In combination, we are trying to hedge the fragility of fiat currency and create a parallel financial system that challenges the hegemony of the US dollar.

2. Russia: a financial framework supported by commodities

The 2022 G7 freezes Russia's foreign exchange reserves is a critical moment, accelerating Russia's turn to external currencies. The Kremlin's response is multifaceted:

Gold as a core reserve asset: Russia has significantly increased its gold reserves, recognizing the value of gold as a neutral, non-asset, and has no counterparty risk.

Resource-supported trade mechanism: Russia has promoted the mechanism of settlement and trade on hard assets such as gold, oil and gas, and bypassed the US dollar-based system. This commodity-backed framework reduces reliance on sanctioned fiat currencies.

Bitcoin is used to circumvent sanctions: Russia explores Bitcoin as a decentralized tool for international trade. By leveraging Bitcoin’s neutrality and anti-external control, Russia attempts to bypass restrictions and integrate elements of external currencies into its financial strategy.

3. Global Trends: Trends toward External Currencies through Hedging with Gold and Digital Currencies

Not only limited to Russia. Central banks in emerging markets are following:

Record buying of gold: In 2022, central banks purchased more than 1,200 tons of gold, the highest in more than 50 years Total annual volume. This trend underlines the global preference for tangible, non-reserves amid increasing geographic and economic uncertainty.

Experience of digital currencies: Iran and Turkey (and more than a hundred others) are actively exploring the use of digital currencies such as Bitcoin and CBDC to reduce the use of US dollar dependency. These initiatives aim to build financial resilience and autonomy in a changing global order.

Strategic impact on the United States

Rise of external currencies—whether it is gold or bit Coins are still CBDCs like the digital RMB - marking a profound change in global financial dynamics. Central banks' actions reflect an increasing awareness of the fragility of the fiat currency system and the need for alternative reserve strategies.

For the United States, this ever-changing pattern highlights the urgency of adjusting its financial strategy. Without decisive action, the dominance of the US dollar will face increasingly severe challenges from multipolar systems based on external currencies. Integrating tools such as Bitcoin and dollar stablecoins could provide the United States with a way to modernize its financial architecture while maintaining its leadership in the global economy.

The strategic attraction of external currencies

For those who are concerned about the fragility of internal currencies, External goodsCoin provides a compelling alternative. Gold and Bitcoin, in particular, provide:

Soviet: External currencies are not bound by other liabilities, providing control and security that fiat currency reserves are incomparable.

Resilience: These assets are not affected by the risk and weaponization of the opponent, and these problems have always plagued internal currencies.

The confiscation of Russian reserves is a watershed moment that reveals the limitations of the fiat currency system and prompts central banks to re-produce strategic assessments. This ever-changing philosophy of reserve highlights the growing appeal of external currencies as countries hedge against their economic future in response to an increasingly multipolar financial landscape.

Impact on the United States

Understanding the transformation from internal currency to external currency, and grasping The logic behind Trump’s potential digital asset strategy is crucial.

If rival countries increasingly turn to external currencies to protect their reserves, the United States must modernize its financial strategy to maintain its global leadership. Integrating Bitcoin and dollar stablecoins could allow the United States to balance these trends, maintain resilience in the ever-changing global financial order while maintaining its core role as the dollar.

This background provides the basis for understanding broader structural and geopolitical pressures that make digital asset integration a strategic necessity.

b. The consequences of the overvalued US dollar

The US dollar's status as a global reserve currency has created Continued international demand has driven its overestimation. While this brings some advantages, such as the ability of the United States to borrow at low cost, it also introduces significant economic challenges:

Trade deficit and deindustrialization: a strong dollar This has reduced the competitiveness of the United States' exports and encouraged imports, resulting in a sustained trade deficit. This dynamic has led to hollowing out the U.S. manufacturing industry, as the industry has moved to lower-cost .

Financial sector growth comes at the expense of industry: surpluses generated by trading partners are often reinvested in U.S. Treasuries and financial markets. This inflow of funds disproportionately drives growth in the financial sector, prioritizing productive investment in infrastructure and industry.

Strategic vulnerability: The resulting excessive dependence on foreign supply chains for key commodities exposes the United States to geopolitical shocks, weakening economic resilience and security.

c. Trifin's puzzle and "overprivileges"

The global reserve currency system The core is a paradox called the Triffen puzzle: In order to provide enough liquidity to the world, the United States must continue to operate its trade deficit and export its US dollar to Meet global needs. However, these deficits weaken the economy, erode industrial capacity and exacerbate inequality.

This paradox gives the United States "over privilege" to borrow at low cost and maintain its deficit indefinitely. But this privilege is a double-edged sword. While it benefits financial markets, it also exacerbates wealth inequality, accelerates deindustrialization, and creates a strategic dependence on foreign power.

Why this matter

These vulnerabilities are not just academic criticism— They have real-world implications for the economic development, geostrategy and security of the United States. Trump stressed that the integration of bitcoin and stablecoins into the financial system can be seen as a direct response to these vulnerabilities. By addressing the risks inherent in internal currencies and leveraging the advantages of external currencies, this strategy allows the United States to maintain its leadership in a rapidly changing global financial landscape. After exploring the root of these challenges, we can now establish an argument about why digital assets, bitcoin and stablecoins are not just financial innovations, but A necessary tool to adapt to the future multi-polar financial world.

Part 3: Bretton Woods System III and the Transformation to External Currencies

Global The evolution of the monetary system: from gold to fiat currency to bitcoin

Understanding the emergence of what Zoltan Pozsar calls the "Bretton Woods System III" and the external With the increasing transformation of currency, it is crucial to understand the historical evolution of the monetary system. From the classical gold standard in the 19th century to the late 20th century lawThe fixed currency system, every evolution of the global financial structure, is driven by the fragility of the previous system and the pursuit of currency stability. The current shift reflects not only the flaws of fiat currencies, but also the broader historical trajectory towards decentralization and resilience.

Classical gold standard: self-regulation system (19th century to 1914)

19th century Witnessing the rise of the classical gold standard, a monetary system formed organically rather than through formal agreements. Its key characteristics reflect monetary discipline and economic progress:

Stability and trust: The inherent scarcity of gold and the cost of production provide a universal exchange of trust . Even during rapid industrial growth, price levels remained stable or slightly deflated.

Automatic discipline: and central banks cannot expand their money supply beyond their gold reserves. Trade imbalances are naturally corrected between gold flows, imposing fiscal and monetary discipline.

Global prosperity: The gold standard supports unprecedented industrial development and promotes international trade and investment. The consistency of this system promotes stable growth and low inflation.

Money Unification: By the end of the 19th century, about 50 had adopted the gold standard, creating an interconnected and predictable global Monetary order.

However, with the outbreak of World War I in 1914, this stability collapsed. Countries abandoned the gold standard and funded war efforts through deficit spending, triggering inflation and undermining monetary discipline. The practice that was initially advertised as a temporary suspension became a long-term experiment on fiat currencies, laying the foundation for subsequent monetary instability.

Gold exchange standard and the period between the two world wars (1922-1930s)

The efforts to restore monetary order after World War I culminated in the gold exchange standard introduced at the Genoa Conference in 1922. This system represents a deviation from the classical gold standard:

Failed design: Foreign currency (mainly US dollar and pound) can be held instead of gold as reserves . This arrangement allowsKey reserve currency issuance of liabilities that far exceed its gold holdings.

Speculative boom and bust: The inflationary boom of the 1920s, driven by the expansion of liquidity inherent in the system, ultimately leading to Speculation frenzy such as the Florida real estate bubble and the 1929 stock market crash.

The Great Depression: The collapse of the gold exchange standard exacerbated the deflation spiral of the 1930s. Its design defects, including the dual calculation of reserves, have caused systemic instability.

The period between the two world wars exposed the limitations of some gold support and reliance on fiat currency liquidity, highlighting the need for a more robust system.

Bretton Woods System I (1944-1971): USD-Gold Exchange Standard

After World War II, the Bretton Woods Conference established a new monetary order anchored by the US dollar. Although the currency is pegged to the US dollar, only the US dollar can be converted into gold and is limited to foreign central banks.

Dollar hegemony: The system creates a dollar exchange standard that positions the United States as a global economic leader. Foreigners hold US dollar reserves and actually trust the United States to maintain monetary discipline.

Inflation tendency: Unlike the classical gold standard, the Bretton Woods system lacks an automatic correction mechanism. The United States can issue dollars without immediate consequences, resulting in a trade deficit and excessive creation of the dollar.

Confidence collapsed: In the 1960s, as foreign countries led by France demanded the US dollar for gold, the US gold reserves gradually decreased . In 1971, President Nixon suspended the exchange of US dollars and gold, which actually ended the system and opened the era of fiat currencies.

Bretton Woods System II (1971-2022): Vulnerability based on fiat currency

The transition to fiat currencies marked the beginning of the Bretton Woods System II, where the dominance of the dollar was maintained through the demand for U.S. Treasury bonds and the petrodollar system:

StoneOil-USD Agreement: Oil exporters price oil in US dollars, ensuring sustained global demand for the US dollar. In return, the United States provides military and support.

Liability-backed liabilities: This system replaces gold as its main reserve asset with U.S. Treasury bonds. However, this creates a liability base backed by other liabilities, which relies entirely on trust in the United States' fiscal prudence.

Financialization and trade imbalance: reinvesting trade surpluses in U.S. Treasury bonds has driven excessive growth in the financial sector, leading to deindustrialization and wealth inequality (1971 what happened?).

Structural vulnerability: The fiat monetary system is inherently fragile and vulnerable to inflation, excessive debt and geoweaponization Influence. The freeze of Russia's foreign exchange reserves in 2022 highlights these risks again, weakening trust in internal currencies.

Bretton Woods System III: The Transformation to External Currency

Bretton Woods System III The emergence reflects the global trend from internal currencies based on fiat currencies to tangible, non-sex assets such as gold and Bitcoin:

Geocatalysts: Russia and Ukraine The conflict and the G7 freeze on Russian reserves exposed the fragility of the fiat currency system, prompting countries to diversify their reserves.

Turn towards gold and Bitcoin: Central banks led by Russia accelerate their purchases of gold, with global gold purchases reaching 1,200 metric tons in 2022 , the highest level in more than 50 years. Meanwhile, Russia and others began to explore the use of Bitcoin for international trade, recognizing its resilience in sanctions and interventions.

Bitcoin’s unique role: Unlike gold, Bitcoin combines the best attributes of external currencies and modern practicality: < /p>

Digitalization, decentralization and non-censoring: not manipulated, non-censoring, easy to transfer globally.

Limited supply: The fixed supply of Bitcoin ensures protection against inflation dilution.

Neutral and borderless: Bitcoin operates independently of any kind, making it particularly suitable for multipoleFinancial order.

Impact on global finance

The transition to Bretton Woods System III marks the global Deep transformation of the financial system: From liabilities to tangible assets: Countries are increasingly hedging the risks of internal currencies by accepting external currencies such as gold and Bitcoin .

The rise of multipolar systems: As trust in the hegemony of the US dollar weakens, decentralized and commodity-supported systems are gaining attention .

Bitcoin as a global reserve asset: combining scarcity, decentralization and digital utility, Bitcoin is becoming neutral in the 21st century , the most viable candidate for resilient reserve assets.

For the United States, this shift underlines the urgency of adjusting its financial strategy. By incorporating Bitcoin into its reserves and leveraging U.S. stablecoins, the United States can navigate the challenges of Bretton Woods System III while ensuring its leadership in a rapidly changing global financial landscape.

Part 4: The role of US dollar stablecoins in financial transformation

a. Connection Internal and external currencies

The US dollar stablecoin acts as a bridge between the traditional financial system (internal currency) and the emerging decentralized financial ecosystem (external currency).

Pedge to Treasury bonds: Stablecoins maintain their peg to the US dollar by holding reserves, most of which are short-term U.S. Treasury bonds. This support ensures its stability and reliability while connecting them directly to the core of the traditional financial system.

Extend US dollar dominance: by enabling seamless transactions and liquidity in the digital ecosystem, stablecoins effectively embed US dollars in Digital economy. Their presence in blockchain-based systems ensures that the dollar remains relevant and widely used, even as the global financial landscape shifts to decentralization.

b. Strengthen the hegemony of the US dollar

Stablecoins act as digital Trojan horses for the US dollar, and use them Influence embeds newfinancial system.

Competition with digital RMB and commodities for money: Facing the growing challenges of digital RMB and attempts for money support, stablecoins provide powerful Countermeasures. By seamlessly integrating into digital networks, they ensure that the dollar remains central in global trade and finance.

Ensure accessibility: Stablecoins provide users around the world with an efficient way to access and trade dollars, even in traditional The same is true for areas with limited, tightly controlled or unstable banking systems. This strengthens the US dollar’s ​​coverage and maintains its dominance in the digital age.

c. Stablecoins are not only financial instruments, but also support U.S. Treasury bonds Market mechanism.

Structural demand for Treasury bonds: Reserves supporting stablecoins hold mainly U.S. Treasury bonds, which creates a sustained growing demand for these assets. This dynamic reduces volatility, supports liquidity, and indirectly stabilizes interest rates in the Treasury bond market.

Modern Petro Dollar System: Just as the petrodollar system creates structural demand for U.S. Treasury bonds through global oil pricing, stablecoins are now Anchor the correlation of the US dollar in the digital ecosystem. This ensures that Treasury bonds remain the cornerstone of the traditional and modern financial systems and enhances financial stability in the United States.

d. Risk and mitigation

Although stablecoins bring significant opportunities, they Potential risks that must be addressed are also introduced.

Regulatory Challenge: Uncertainty surrounding stablecoins may hinder its integration into the mainstream financial system. A clear and consistent regulatory framework is essential to ensure its growth and stability.

Systemological vulnerability: If the issuer is poorly managed or the reserves are inaccessible, excessive reliance on stablecoin reserves can create systemic risks. Strong supervision and diversified reserve holdings are crucial to mitigating these risks.

Oprivate Reliance: Reliance on U.S. Treasury bonds exposes stablecoins to U.S. fiscal and debt management strategies. Ensuring fiscal discipline and maintaining global confidence in Treasury bonds is to maintain stabilityA necessary condition for the validity of the fixed currency.

In short, the dollar stablecoin represents a key tool to maintain U.S. financial leadership. By connecting traditional and digital economies, strengthening the dominance of the dollar and stabilizing the Treasury market, they enable the United States to meet challenges in a rapidly changing global financial system. However, prudent management and forward-looking regulation are crucial to reaching its full potential while mitigating related risks.

Part 5: Bitcoin’s strategic role in the United States

a. Hedging statutory The fragility of currency

Bitcoin provides a strong hedge to deal with the inherent fragility of fiat currencies and traditional financial systems, providing the United States with response to economic instability strategic advantages.

Strategic Bitcoin Reserve (SBR): The United States can use Bitcoin as a strategic Bitcoin reserve to ensure its financial stability and mitigate systemic risks. As a decentralized and limited asset, Bitcoin can serve as a tool to hedge inflation, currency depreciation and debt erosion.

Heiding inflation: Bitcoin has a fixed supply of 21 million coins, ensuring it is not subject to traditional legal tenders and U.S. Treasury bonds The impact of inflationary pressure on reserve assets. This deflationary feature makes Bitcoin a reliable store of value, protecting wealth from currency depreciation.

Fake off debt depreciation risk: By holding Bitcoin, the United States has gained a buffer against the risk of excessive debt accumulation and long-term fiat currency depreciation. As Bitcoin appreciates in global adoption, it provides a means to reduce the actual burden of debt.

First-mover advantage: Bitcoin's limitations amplify the benefits of early adoption. By building a large number of SBRs, the U.S. can acquire Bitcoin at a lower cost before global adoption accelerates lead to its revaluation. This strategic move will allow the United States to use its appreciated Bitcoin reserves to repay its fiat currency-denominated debt, turning imminent fiscal liabilities into economic strength.

Laters of Bitcoin adoption will face higher acquisition costs and reduce the potential returns of their reserves. Early adopters like the United States can secure their financial future while shaping rules of participation in a Bitcoin-driven global economy.

b. Promote energy independence through mining

Bitcoin mining is often criticized for its energy consumption, but it strengthens the United States Energy independence and infrastructure development provide unique opportunities.

Incentive energy investment: Bitcoin mining creates sustained energy demand, incentivizing under-enough Investment in utilizing or renewable energy. This dynamic strengthens the U.S. energy grid, diversify energy production, and reduces dependence on foreign energy supply.

Balance the demand of the grid: Mining operations act as a stabilizer of the energy grid, consuming excess energy during the trough of demand and reducing consumption during peak use. This flexible demand management improves the efficiency and resilience of the grid. Especially in renewable energy-rich areas where energy supply may fluctuate.

Dual-purpose infrastructure: Strategically coordinated mining Operations can serve both economic and security purposes. For example, in emergencies, excess energy generated by mining can be redirected to critical infrastructure to support defense preparation and disaster response.

c. Return and Industry

Bitcoin-driven potentially catalyzes the reindustrialization of the United States and strengthens supply chains to solve decades of offshoring Vulnerability created.

Reindustrialization through controlled revaluation: Promoting Bitcoin adoption may contribute to controlled revaluation of assets, allowing moderate inflation , thereby improving U.S. export competitiveness. By balancing the overvalued dollar, the U.S. can stimulate manufacturing and restore key industries.

Enhanced Supply Chain: Bitcoin mining and its related infrastructure investments encourage economic activity, enhance the resilience of the U.S. supply chain and reduce dependence on foreign production.

Why Choosing Bitcoin over alternatives?

The unique properties of Bitcoin—digital transferability, limited supply and decentralized nature—make it a solution The ideal asset for modern economic and geo-challenges beyond traditional alternatives such as gold.

The limitations of gold: Although gold is still a valuable means of storage of wealth,But its physical nature makes it less practical in global transactions and integration into the digital economy. Gold also lacks programmability and network effects that make Bitcoin particularly suitable for the modern era.

Bitcoin’s Advantages: Bitcoin combines the neutrality and scarcity of gold with its unparalleled digital utility. Its decentralized network ensures that no single entity can control its value, and its limited supply guarantees resistance to inflation dilution.

emphasizes first-mover advantage

by taking the lead and building a large number of strategic Bitcoin reserves, the United States Can:

Debt repayment: As the value of Bitcoin appreciates due to global adoption, the United States can use its reserves to settle debts denominated in fiat currencies, effectively Transform depreciated liabilities into growing assets.

Share the future financial order: Early adoption makes the United States a standard-maker in the emerging Bitcoin economy, enabling it to impact infrastructure , regulation and global norms.

Ensure long-term economic leadership: Embrace Bitcoin now to ensure the United States remains at the forefront of financial and technological innovation, consolidating its role as a global economy The status of a strong country. By incorporating Bitcoin into its finance and industries, the United States can address the vulnerability of fiat currencies, enhance energy independence, and promote economic resilience. Early adoption is not only beneficial; it is a strategic necessity to maintain leadership in a rapidly changing global financial system.

Part 6: Sovereign Game Theory: Geo-race of Bitcoin

a. Bit Prisoner Dilemma for Coin Adoption

The use of Bitcoin presents a classic Prisoner Dilemma—a scenario in which the results of choices faced by individual actors depend not only on Their actions also depend on the actions of others. In the context of Bitcoin adoption, the stakes of this dilemma are amplified by the unique characteristics of assets: its strictly limited supply, decentralization, and increasing relevance in a world that moves away from legal systems.

The competition adopted by global Bitcoin can be boiled down to three strategic scenarios: If no one adopts Bitcoin

The current financial system continues to exist, and the United States maintains the hegemony of the US dollar. However, structural flaws in the statutory system—the ongoing trade deficit, deindustrialization and increasing debt—continue to erode economic stability. For the United States, this could lead to:

hyperinflation, as uncontrolled debt issuance depreciates the dollar.

Military power is weakened as the recession reduces defense spending.

Global influence erodes because the dominance of the US dollar has weakened.

For competitors like Russia, relying on a statutory-based system puts them in the face:

Fragility to sanctions: Both countries have experienced weaponization of internal currencies, such as the freezing of Russian foreign exchange reserves.

Dollar dependence: their economic strategies are still limited by the dependence of the dollar system, hindering their ability to operate independently. Recognizing these vulnerabilities, the two countries have begun to stay away from internal currencies, as shown by the Digital RMB initiative and Russia's exploration of Bitcoin and resource-backed currencies.

If some are adopted while others are not

Advantages of early adopters: Early adoption of bits The currency will receive the following benefits:

Money sovereignty: protection from the vulnerability of fiat currency.

Economic Leverage: Due to the scarcity of Bitcoin, early adopters can obtain Bitcoin at a lower cost.

Strategic influence: In the emerging Bitcoin-driven order, early adopters were able to shape rules.

Disadvantages of late adopters: Delayed adoption will face the following challenges:

Rising cost : Due to the limited supply of Bitcoin, the increase in adopters will push up prices.

Rely on infrastructure for early adopters: This weakens economic sovereignty.

Geopathy Disadvantages: Global systems will tend to align with Bitcoin-integrated economies.

If all use Bitcoin

The world will appear A new monetary standard that balances the financial competitive environment and reduces distortions caused by the statutory system.

However, early adopters will still maintain their advantages, including:

Get a larger share limited Bitcoin supply.

Leading position in the integration of Bitcoin into the global economic system.

Why is the first-mover advantage important

Strictly limited supply of Bitcoin (21 million pieces) Created unprecedented incentives for early adoption. Later generations will inevitably acquire less Bitcoin at higher costs because the price and utility of Bitcoin will rise with network effects. For the United States, taking action now will be able to:

Economic Advantage: Accumulating reserves before Bitcoin becomes extremely expensive.

Strategic positioning: shaping global adoption standards to be in line with American interests.

Resilience: Get a tool to hedge against fiat currency vulnerability and geopolitical risks.

The risk of inaction is to hand over these advantages to opponents, leading to weakening of the U.S. economy and strategic marginalization.

b. Adversary's strategy

When the United States debates its strategy, like Russia The opponents are actively taking measures to cope with the vulnerability of fiat currencies, using centralized and decentralized tools:

's Digital RMB and the Belt and Road Initiative ( BRI)

Digital RMB expansion:

The Central Bank Digital Currency (CBDC) was developed to reduce the US dollar in international trade

For example, projects such as MBridge integrate digital RMB into regional trade to achieve cross-border payments away from the US dollar system.

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One ​​Belt and One Road Integration: BRI binds the monetary and financial systems of participating countries to expand the influence of the digital RMB and reduces dependence on the US dollar.

Bitcoin and blockchain potential: Despite restrictions on Bitcoin, its historical dominance in the mining field and Exploration of blockchain technology shows awareness of Bitcoin’s strategic potential.

Russia's resource-supported financial strategies and Bitcoin adoption

Use commodities as currency: In response to sanctions, Russia explores resource-supported currencies linked to oil, gas and gold, creating alternative trade mechanisms.

Bitcoin is used to circumvent sanctions: Russia's increased use of Bitcoin reflects its neutrality and resilience to Bitcoin Recognition enables it to trade outside the traditional financial system.

Geo-impact: integration of Bitcoin into its economic strategy may enable Russia to establish new alliances and challenge the dominance of the dollar, and ensure financial sovereignty.

c. Opportunities in the United States

In the geopolitical competition of Bitcoin, the United States faces a Key choices: embrace Bitcoin as a strategic asset, or risk being surpassed by opponents in a rapidly changing financial landscape.

Ensure leadership through early adoption:

Get Bitcoin with Treasury and US dollar stablecoins Side by, will modernize the US financial system to deal with opponents' strategies.

The neutrality and decentralized nature of Bitcoin make it a sustainable in a multipolar worldA powerful tool for ball trust and stability.

Shaping global standards:

Early adopted enables the United States to influence Bitcoin into global systems process to ensure that it is consistent with the strategic interests of the United States.

By taking the lead, the United States can establish regulatory and infrastructure norms that benefit its economy and allies.

Enhanced Alliance: Bitcoin adoption provides an opportunity to strengthen financial ties with allies to create a centralized system (such as digital) RMB) alliance.

Strategic necessity

Bitcoin competition is not only a financial competition, but also a Geographical necessity. The Prisoner’s Dilemma Framework highlights the high risk: those who act decisively will gain a significant advantage, while those who act delay may fall behind.

For the United States, the decision to embrace Bitcoin goes beyond the economic level—which is to ensure resilience in an increasingly decentralized and multipolar financial order , strategic necessity for leadership and influence.

Part 7: Multipolar Financial Order

a. The end of US dollar hegemony?

For decades, the US dollar's position as the world's dominant reserve currency has been supported by the petrodollar system, the demand for U.S. Treasury bonds, and the role of the US dollar in international trade. However, with the changing global economic dynamics, the era of dollar hegemony is increasingly threatening:

Challenge on the dominance of the dollar:

Erosion of Trust: The move to freeze Russian foreign exchange reserves during the Ukrainian conflict has shown many that assets denominated in US dollars are vulnerable to weaponization.

The rise of alternatives: digital RMB and Russian commodity-supported currency initiatives show that more and more efforts are being made around International trade and financial transactions are carried out through the US dollar.

Structural weaknesses:The overvaluation of the US dollar and its reliance on a sustained trade deficit to maintain global liquidity have weakened the U.S. industrial competitiveness and created economic vulnerability.

Emerging decentralized financial systems:

In response to the vulnerability of fiat currency systems, countries are exploring decentralized assets such as Bitcoin and blockchain-based payment systems.

Commodity-supported currency and digital alternatives are reshaping the financial landscape, leading to a more fragmented, multi-polar order.

This evolution marks a potential decline in the dollar's status as the sole reserve currency, a shift that could redefine global power dynamics.

b. Bitcoin’s neutrality as a solution

Erosion and substitution of US dollar hegemony Against the backdrop of the rise of the system, Bitcoin stands out as a uniquely positioned solution and can cope with the challenges of multipolar financial order:

Decentralization and neutrality :

Bitcoin is not controlled by any single or institution, protecting it from geo-tensioning that plagues the currency-backed geopolitical tensions. Unlike the digital RMB, the decentralized nature of Bitcoin ensures that no single entity can manipulate its supply or affect its use.

Global accessibility: Bitcoin’s borderless and censorship-resistant design makes it a universally accessible asset for international trade and as a reserve currency .

Scarcity and trust:

Bitcoin's 2100 Wanmai Limited Supply provides a hard currency standard that protects it from inflation and depreciation, which is in stark contrast to fiat currencies.

Its transparent, open source protocol promotes trust in its operations, in sharp contrast to the opaque currencies that are often associated with.

WhyBitcoin is suitable for the multipolar world

As countries transition to multipolar financial systems, Bitcoin provides solutions to solve the challenges of decentralization, trust and resilience :

Real global reserve assets: Bitcoin's neutrality and scarcity make it a powerful candidate for the decentralized global currency standard, similar to the classical era gold.

Hedging fiat currency instability: Bitcoin provides an alternative without rival risk for those who are concerned about the fragility of fiat systems Means of store of value.

Changing and balancing centralized digital currencies: Although supported digital currencies (such as digital RMB) concentrate power, Bitcoin’s decentralization Democratic architecture democratizes access and reduces systemic risks.

Conclusion: New financial paradigm

The decline of US dollar hegemony and the decentralized financial system The rise of the new financial paradigm marks the dawn of a new financial paradigm. In this ever-changing landscape, Bitcoin’s neutrality, resilience and accessibility make it a transformative force. For the United States and others, integrating Bitcoin into its financial strategy is not only a forward-looking innovation, but also a necessary step to address the complexity of the multipolar world and ensure economic stability in the 21st century.

Part 8: Stablecoins, Bitcoin and the Road to Resilience

Along with the World The financial system transitions to a multipolarization and decentralization future, with stablecoins, Bitcoin and U.S. Treasury bonds as complementary tools to jointly deal with the vulnerability of the statutory system. Together, they form a framework that can maintain U.S. financial dominance, ensure stability, and promote resilience in a rapidly changing landscape.

Stablecoins: anchor the US dollar in the digital age

Extend the dominance of the US dollar: with the US dollar Pegged stablecoins act as digital representations of fiat currencies in the blockchain ecosystem. By embedding the dollar into a decentralized system, stablecoins enhance their relevance in a world increasingly dominated by digital and decentralized financial infrastructure.

Support Treasurys: Stablecoins backed by U.S. Treasury reserves create sustained demand for these tools, stabilize their markets and indirectly spendHolding a wider financial system.

Global Practice: Stablecoins provide low-cost, instant cross-border transactions, expanding US dollar usage to limited traditional banking systems Regionally, ensure that the US dollar remains the preferred currency in decentralized finance and emerging markets.

Bitcoin: Hedging and long-term reserve assets

Strategic tools to hedge fiat currency risks: As the fiat system faces growing inflationary pressures and debt depreciation, Bitcoin, as an alternative reserve asset, has limited supply, decentralization and control-independent properties that make it a powerful tool to hedge against the fragility of fiat currencies.

New Reserve Assets: Bitcoin’s neutrality and scarcity make it a global reserve asset in a multipolar financial order. As an external currency, it complements stablecoins and Treasury bonds, providing a decentralized foundation for financial resilience.

U.S. Treasury bonds: Provide short-term liquidity

Treasury bonds as the cornerstone of stability: Despite the statutory system With vulnerability, U.S. Treasury remains the cornerstone of global finance, providing liquidity and a sense of security during times of economic uncertainty.

Integration with digital systems: By supporting stablecoins, Treasury bonds ensure short-term stability within the decentralized ecosystem, The advantages of traditional financial instruments are combined with the flexibility of digital assets.

Complete framework: stability, flexibility and resilience

System three-in-one: Stability Coins, Bitcoin and Treasury bonds together form a combination of tools to solve different aspects of financial stability and innovation:

Stablecoins anchor the US dollar Set in the digital ecosystem, strengthen its dominance.

Bitcoin provides hedging and decentralized neutral reserve assets.

Treasury bonds ensure liquidity and short-term stability.

Faced with fiat currency vulnerability: This framework mitigates the foundation of a diversified financial systemThe risk of excessive expansion of fiat currencies and systemic vulnerability. While Treasury bonds provide instant liquidity, Bitcoin and stablecoins introduce resilience and adaptability to the long term.

Promote economic resilience: The integration of these tools allows the United States to maintain leadership in the global financial system while adapting to new challenges. Stablecoins expand the hegemony of the dollar, Bitcoin provides tools to hedge fiat currency instability, while Treasury bonds stabilize the market during the transition period.

Conclusion: A new era of currency resilience

between stablecoins, Bitcoin and Treasury bonds The interactions represent an innovative response to the vulnerability of statutory systems. By leveraging the complementary advantages of these tools, the United States can ensure economic resilience, maintain financial leadership, and adapt to the complexity of a decentralized, multipolar world. This triple combination of financial instruments marks a strategic path forward, embracing the change potential of digital assets while ensuring stability.

Part 9: Bitcoin as a stabilizer for society and economy

In addition to its geographical location And beyond the macroeconomic significance, Bitcoin also provides unique benefits as a social and economic stabilizer. By protecting wealth and promoting financial literacy during inflationary times, Bitcoin solves some of the most pressing challenges faced by individuals and communities in the modern financial system.

a. Wealth preservation and inflation relief

Tools to hedge inflation: in currency depreciation and During a period of rising inflation, the limited supply of Bitcoin provides protection against erosion of purchasing power. Unlike fiat currencies that can be inflated by overprinting money, Bitcoin’s supply cap ensures that its value does not dilute over time.

Protect wealth in transition: Historically, the transition period of inflation (whether it is a war, an economic crisis or a fiat currency collapse) would be destroyed by Savings held by traditional currencies. Bitcoin provides a decentralized alternative that enables individuals and companies to protect their wealth without relying on banks, or central institutions.

No industrial competition: Unlike gold or other commodities, Bitcoin has no physical purpose and therefore does not cause damage in the non-monetary field Sexual inflation impact. This allows it to operate purely as a monetary asset, maintaining neutrality and minimizing economic distortions.

b. Promote financial literacy

Practical financial education tools: The transparent and immutable nature of Bitcoin provides unique teaching of basic financial concepts Opportunities. By understanding Bitcoin’s mechanisms such as supply constraints, decentralization and the role of private keys, individuals can have a deeper understanding of monetary principles.

Cultivate financial resilience: As people learn to use Bitcoin to save, invest and trade, they gain practical experience in managing wealth in a decentralized financial system. This enhances resilience to systemic shocks, And improves individual autonomy in financial decision-making.

Enlighten the future generation: Incorporating Bitcoin into educational curriculum and personal finance In the strategy, it provides the younger generation with tools to deal with the ever-changing economic landscape. By promoting financial literacy and sovereignty, Bitcoin can help mitigate economic vulnerabilities associated with fiat systems.

Conclusion: The stable force in the uncertain world

Bitcoin's unique attributes make it a stable force for individuals and society. As a hedge against inflation Tools and means to promote financial literacy, Bitcoin solves systemic vulnerability while empowering people to control their financial future. In an era of economic uncertainty, Bitcoin’s role as a social and economic stabilizer has highlighted Its potential for transformation beyond the value of monetary.

Part 10: Conclusion: The Way to Go

The global financial system is at a critical turning point. The structural weaknesses of the statutory system—uncontrolled currency printing, dependence on liabilities and sensitivity to geoweaponization—are no longer theoretical risks, but clear and realistic. Challenges. With the gradual disappearance of the Bretton Woods System II era, the emergence of a multipolar financial landscape requires a resilient and decentralized monetary framework. Now is the time to take decisive action.

Snatch the first-mover advantage

The risk is particularly high for the United States. As the main manager of the global financial order, The United States has an unparalleled opportunity to lead this transformation. By leading the strategic Bitcoin reserve (SBR), the United States can earn extraordinary gains:

Hedging fiat currencies Devaluation: BitThe limited supply and global adoption of the currency give it unique appreciation potential when fiat currencies face inflationary pressures. By holding Bitcoin as a reserve asset, the United States can offset the risks associated with its growing debt and currency depreciation.

Debt repayment: As Bitcoin appreciates due to global adoption, the United States can use its early holdings of Bitcoin in fiat currency Settling down its debts. This strategy transforms the current liability-driven system into a system supported by appreciation of external currencies.

Shaping global financial standards: Early adoption makes the United States a standardizer for integrating Bitcoin into the financial system, ensuring it is decentralized Continuing leadership in the world.

Bitcoin as a strategic reserve asset

Bitcoin's neutrality, scarcity and independence Sex makes it an ideal tool to hedge against the vulnerability of legal systems. Unlike gold or other traditional assets, Bitcoin’s programmability and global portability offer unparalleled practicality in the digital age. As the global Bitcoin adoption competition accelerates, first-movers will gain disproportionate economic and strategic advantages.

Stablecoins as digital extensions of the US dollar

Stablecoins provide complementary benefits, will The influence of the US dollar expands into the decentralized ecosystem. By anchoring the dollar dominance in the digital realm, stablecoins provide liquidity and stability while creating structural demand for U.S. Treasury bonds. Together with Bitcoin, stablecoins form a dual strategy to modernize financial systems and ensure global economic leadership.

Call to bold

The path forward requires visionary leadership and innovative development . To ensure long-term economic and geo-resilience, the United States must:

Integrate Bitcoin into Currency: Establishing a strategic Bitcoin reserve will protect it from fiat currency fragility , while leveraging Bitcoin appreciation to provide opportunities for debt reduction.

Promoting digital asset innovation: a regulatory framework that encourages responsible innovation in Bitcoin and stablecoins will ensure that the United States remains in financial technology cutting edge.

Leading the global adoption competition: Through early adoption of Bitcoin, the United States can secure its leadership position, allowing it to maintain its core role in shaping the decentralized financial order.

President-elect Donald Trump and his incoming office have clearly demonstrated their concerns through public statements and strategic appointments Understanding of necessity:

David Sacks serves as the Tsar of Artificial Intelligence and Crypto Assets: As a well-known advocate for decentralized systems, Sacks' appointment highlights the introduction of Bitcoin Integration of digital assets such as stablecoins into the focus.

Howard Lutnick serves as Commerce Secretary: Lutnick advocates Bitcoin and stablecoins Records show commitment to using these innovations to enhance U.S. economic sovereignty.

President-elect Trump's statement: Trump’s opposition to the Central Bank Digital Currency (CBDC) and his recognition of Bitcoin’s potential to protect U.S. wealth show that he has a deep understanding of the ever-changing financial landscape.

Appointments from Stephen Miran and Paul Atkins, two of them are known for supporting innovation, demonstrating a regulatory environment conducive to promoting digital asset growth while responding to systemic risks.

The future of resilience

The transition to a multipolar financial system presents challenges, but also unprecedented opportunities. By acting decisively, the United States can alleviate the vulnerability of the statutory system while setting standards for the future of global finance. Bold leadership and Strategic vision is not only necessary—they are essential.

Trump's appointment and signals indicate their willingness to accept decentralized currencies as an economy and strategic tools for georesilience. By leveraging first-mover advantages and using Bitcoin as a reserve assetIntegration, and expanding the dollar dominance through stablecoins, the United States can ensure its position as a resilient, fair and innovative global financial system architect, laying the foundation for future generations.