Monday 3rd February 2025

Things are moving fast.

Today, Donald Trump signed an Executive Order to establish a US Sovereign Wealth Fund. This comes after he had signed, on day two, another EO that aims to established a Strategic Digital Asset Reserve. This gained a lot of attention, particularly from the Bitcoin and wider crypto community, and not all of it good.

The uproar came because it appears that this will not only be a Bitcoin Strategic Reserve, as previously promised, but will instead encompass other crypto currencies also. Solana, Ripple and Ethereum to name just a few. Here at Sovereign Digital, we aren’t particularly fussed either way – a Digital Reserve will include Bitcoin regardless, and it’s up to market forces after that to decide which ones will reign.

Regardless, things are now in motion that cannot be undone. The US (and the world) finds itself unable to ignore digital assets, crypto and Bitcoin, with even Christine Lagarde, the head of the ECB, being forced to answer questions as to whether the European Central Bank would find itself holding Bitcoin on its balance sheet. This is game theory for you. Donald Trump’s presidency and declared intention to make the US the leader in AI & crypto is ushering in a new Digital Age. This is not hyperbole. The US and the wider world are now locked in a race to harness the power of digital assets before anybody else. Those that embrace it will not only survive, they will thrive as innovation drives their economy in this new landscape. Those that fail to embrace the change will be left behind, and it could take decades for them to catch up.

Yet even now, there are still individuals who fail to take the opportunity. A lack of understanding, curiosity and willingness to embrace change renders them stagnant in the face of the economic shift we are going through. A lifetime under a fiat system has corrupted their understanding and meaning of money, value and time. It is unfortunate, but it is the way things are.

Within 10-20 years, there will be people and pundits crying about those that embraced Bitcoin early. They will call it unfair that those who took the time (and risk) to adopt and understand this new technological advancement of money got ahead in life, whilst those that didn’t or refused (they will fail to mention this important point) didn’t. As a result, they will call for the redistribution of Bitcoin, calling for the seizure of people’s digital assets in the name of equality. It is a tale that repeats itself through time. One only has to read a few history books to realise it.

And then there is the Trade War. This is a great unknown, and I will not pretend to know what I am talking about in this domain. There are two many variables, too many unknowns as to say with any confidence what the outcome may be. However, this would not be the first time that the US has adopted an economic policy such as this. During their earlier years, they imposed tariffs on a wide scale and their citizenry enjoyed very little if any income tax nationwide. It was also a time of prosperity, innovation and technological advancement for the US that saw it become the powerhouse it is today and that should give anybody pause for thought. At the rate Trump is moving now, and with his clear willingness to embrace bitcoin and digital assets, it is not unreasonable to consider that a policy similar to what once was may be on the cards yet again.

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