Bitcoin
Project 2025 has Bitcoin primed for a $16 trillion price showdown with gold
Project 2025 — a radical policy plan created by the right-wing think tank Heritage Foundation — has spread like wildfire in Washington DC, fueled by the struggling Biden administration.
“Google Project 2025”, Biden’s official X account posted after former president and 2024 Republican candidate Donald Trump claimed “knowing nothing about Project 2025” and having “no idea who is behind it”, in his Truth Social.
The Project 2025 plan, detailed in a mammoth 920-page document that recommends major reforms across every government department, would abolish the Federal Reserve and create a free banking system or a commodity-backed replacement for the U.S. dollar.with some increasingly confident that bitcoin would be more attractive than gold.
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The Project 2025 plan would abolish the Federal Reserve and reintroduce a gold standard — though many … [+] I think bitcoin is already outperforming gold.
to obtain
“Under free banking, banks typically issue liabilities (e.g. checking accounts) denominated in dollars and backed by a valuable commodity,” said Paul Winfree, who served in the Trump administration from 2017 to 2021. he wrote in the Project 2025 plan.
“In the 19th century, this backing was usually gold coins: each dollar, for example, was defined as about 1/20 of an ounce of gold, redeemable on demand at the issuing bank,” Winfree wrote.
“Today, we can expect most banks to back them with gold, although some may prefer to back their notes with another currency or even with stocks or other assets such as real estate.”
The open nature of free banking leaves the door open for banks to back their notes with bitcoin or another cryptocurrency, as “free banking leads to stable, sound currencies and strong financial systems because customers will avoid the riskiest issuers, driving them out of the market,” Winfree wrote.
Meanwhile, a commodity-backed dollar would require the Fed to back the notes it issues with “some hard asset like gold,” Winfree wrote, in a system designed “to control spending and inflation so that its gold reserves are not depleted.”
Bitcoin, often referred to as digital gold due to its immutable nature and fixed supply, has seen its price increase in recent years as it is adopted by Wall Street and adopted by the country of El Salvador as its official currency.
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Bitcoin’s price has skyrocketed in recent years, sparking serious speculation that it could eventually… [+] eclipse both gold and the US dollar.
Forbes Digital Assets
Larry Fink, the chief executive of BlackRock who leads the world’s largest asset manager, which oversees about $9 trillion in assets worldwide, said last year that bitcoin and cryptocurrencies could “revolutionize finance”, triggering a chain reaction that saw a fleet of spot bitcoin exchange-traded funds (ETFs) explode on Wall Street in January.
Last month, former billionaire and “best friend” of the All In podcast Chamath Palihapitiya predicted that bitcoin could “completely replace gold” as countries adopt it.something he thinks could boost its market cap to $15.7 trillion from gold.
Meanwhile, fears of a looming economic crisis and the return of inflation have led analysts at Jefferies to say they expect the Federal Reserve will soon be forced to restart its money printing press. potentially driving down the US dollar and fueling a boom in the price of bitcoin to rival gold.