How Bitcoin is Becoming a Cornerstone of American Economic Policy

“Bitcoin is a hedge against the traditional financial system and a beacon of hope for economic empowerment.”

–Tyler Winklevoss

June 4, 2025 — “We want our fellow Americans to know that crypto and digital assets, particularly Bitcoin, are part of the mainstream economy and are here to stay.”

That was the message Vice President JD Vance delivered to a packed audience at last week’s Bitcoin Conference 2025 in Las Vegas. It’s a message that has clearly taken root. What began as a movement of early adopters—many of them twentysomethings dressed in hoodies—has matured into a full-blown national economic priority, embraced by leaders at the highest levels of government and finance.

Last summer, if you recall, then-candidate Donald Trump made headlines as the first former U.S. president to speak at a Bitcoin conference. He pledged to lower the regulatory hurdles of the Biden administration, to kill Operation Choke Point 2.0, and to position the U.S. as the global leader in Bitcoin.

Less than a year later, and a little over 100 days into Trump’s second administration, that vision is rapidly becoming reality.

The Las Vegas conference was the largest in Bitcoin’s history, with over 35,000 attendees. The speaker list read like a who’s who of power players: sitting senators and representatives, big-name executives and the president’s own sons. It was more than a convention for crypto enthusiasts. It was a policy summit.

Continued Below…

Nvidia, Amazon and Apple Doomed? Trump’s MAGA policies have put 50 “Safe” stocks at high-risk. Click here to learn how to see the full list.

One of the most salient points of discussion was the BITCOIN Act of 2025. The proposed legislation calls for the U.S. government to acquire 1 million bitcoins over a five-year period and hold them in custody. The goal is to create a Strategic Bitcoin Reserve, modeled after the existing reserves for petroleum and gold. Wyoming Senator Cynthia Lummis pointed out that holding even 4 million Bitcoins over a 20-year period could theoretically draw down the national debt, which currently stands at just under $37 trillion.

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This isn’t the sort of talk you’d expect to hear about an asset that, just a few years ago, was derided by many as a vehicle for crime and terrorism. How times have changed! Today, some 50 million Americans own Bitcoin, compared with just under 37 million who own gold, according to new research by Bitcoin financial firm River. For the first time in history, Bitcoin has overtaken its analog cousin in retail ownership in the U.S.

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The U.S. Leads the World in Every Bitcoin Metric That Matters

Indeed, the U.S. dominates in every measurable category of Bitcoin leadership, according to River’s research. Approximately 40% of the world’s mined Bitcoin is held by Americans. Publicly traded U.S. companies account for almost 95% of global corporate Bitcoin holdings. America also holds the majority of Bitcoin in ETFs, venture funding and national stockpiles. As of today, the U.S. government owns more than twice the global market share of Bitcoin as it does of gold.

I don’t believe any of this happened by accident. It happened because our country’s entrepreneurs, technology experts, futurists and policymakers saw an opportunity and ran with it.

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Gold Preserves Wealth, Bitcoin Builds It

None of this is to say that gold is going away anytime soon. As I told a roomful of YPO attendees last week, I still believe deeply in gold as a store of value. Unlike Bitcoin, the yellow metal is a tangible asset, used in jewelry, electronics and much more.

Countless households have relied upon gold for centuries.

When families fled Vietnam and, more recently, Syria, many did so thanks to the universal acceptance of precious metal, which also later helped them rebuild their lives. Gold preserves wealth in times of fear.

Bitcoin, on the other hand, is about growth. It’s about creating wealth, not just preserving it. Bitcoin is programmable. It operates 24 hours a day, seven days a week, and it doesn’t recognize borders or gatekeepers. It’s scarce in a way that few assets are.

This is why companies, ETFs and whole governments are looking to add Bitcoin to their balance sheets. As Eric Trump told the audience, everyone wants to add Bitcoin right now; no one wants to sell. That’s true in every corner of the earth, from the Americas to Africa, from the Middle East to Asia.

I believe the logic is simple. As the world goes digital and decentralizes, Bitcoin offers a new form of reserve asset that combines scarcity with transparency and portability. It’s a hedge against economic uncertainty and bad policymaking.

Next year is the United States’ 250th anniversary, and I can think of no better symbol of economic independence than Bitcoin. It represents the very values Americans hold dear: individual responsibility, innovation and freedom from centralized control. Fiat currencies can be printed without limit, but Bitcoin is capped at 21 million. It requires work and energy to produce.

Several speakers at the Vegas conference likened Bitcoin to the early days of the internet. You probably remember the dial-up modems and clunky browsers. A lot of people back then dismissed the internet as a novelty. In 1998, Nobel Prize-winning economist Paul Krugman famously (and hilariously) wrote that the internet was a disappointment and would eventually prove itself to be as economically impactful as the fax machine.

As we all know, the internet is the backbone of today’s global economy. The same arc of adoption is playing out in real-time with Bitcoin.

I agree wholeheartedly with VP Vance: Bitcoin isn’t going away, and it’s only going to grow stronger with America leading the charge.

Frank Holmes
U.S. Global Investors & Grey Swan

P.S. from Addison: Frank will share deeper insights into bitcoin and the rise of digital assets on tomorrow’s Grey Swan Live! and bring us up to speed on his HIVE data center project.

Frank is a longtime associate of mine. He’s the CEO of U.S. Global Investors, and his background stretches back decades in the hard asset space, from gold to the digital realm with bitcoin mining.

In addition to Frank’s views on bitcoin and digital assets, we’ll also be looking under the hood of two intriguing ETFs he launched – JETS and WAR. It’ll be worth your time to tune in and hear Frank’s perspective.

If you’re a paid member, please join us at Grey Swan Live! tomorrow, June 5, at 11am Eastern.

Your thoughts? Please send them here: addison@greyswanfraternity.com

“Bitcoin is a hedge against the traditional financial system and a beacon of hope for economic empowerment.”

–Tyler Winklevoss

June 4, 2025 — “We want our fellow Americans to know that crypto and digital assets, particularly Bitcoin, are part of the mainstream economy and are here to stay.”

Less than a year later, and a little over 100 days into Trump’s second administration, that vision is rapidly becoming reality.

Continued Below…

Nvidia, Amazon and Apple Doomed? Trump’s MAGA policies have put 50 “Safe” stocks at high-risk. Click here to learn how to see the full list.

Turn Your Images On

The U.S. Leads the World in Every Bitcoin Metric That Matters

I don’t believe any of this happened by accident. It happened because our country’s entrepreneurs, technology experts, futurists and policymakers saw an opportunity and ran with it.

Turn Your Images On

Gold Preserves Wealth, Bitcoin Builds It

Countless households have relied upon gold for centuries.

As we all know, the internet is the backbone of today’s global economy. The same arc of adoption is playing out in real-time with Bitcoin.

I agree wholeheartedly with VP Vance: Bitcoin isn’t going away, and it’s only going to grow stronger with America leading the charge.

Frank Holmes
U.S. Global Investors & Grey Swan

P.S. from Addison: Frank will share deeper insights into bitcoin and the rise of digital assets on tomorrow’s Grey Swan Live! and bring us up to speed on his HIVE data center project.

Frank is a longtime associate of mine. He’s the CEO of U.S. Global Investors, and his background stretches back decades in the hard asset space, from gold to the digital realm with bitcoin mining.

If you’re a paid member, please join us at Grey Swan Live! tomorrow, June 5, at 11am Eastern.

Your thoughts? Please send them here: addison@greyswanfraternity.com

Back in April, when we published what we called the Trump Great Reset Strategy, we described the grand realignment we believed President Trump and his acolytes were embarking on in three phases.

At the time, it read like a conceptual map. As the months passed, it began to feel like a set of operating instructions written in advance of turbulence.

As you can expect, any grandiose plan would get all kinds of blowback… but this year exhibited all manner of Trump Derangement Syndrome on top of the difficulty of steering a sclerotic empire clear of the rocky shores.

The “phases” were never about optimism or pessimism. They were about sequencing — how stress surfaces, how systems adapt, and what must hold before confidence can regenerate. And in the end, what do we do with our money?!

Relative to GDP, the net international investment claim on the U.S. economy was 20% in 2003. It had swollen to 65% by 2023. Practically every type of American company, bond, or real estate asset now has some degree of foreign ownership.

But it’s even worse than that. As the federal deficit has pumped up the GDP figures, and made a larger share of the economy dependent on government spending, the quality and sustainability of GDP have deteriorated. So, foreigners, to the extent they are paying attention, are accumulating claims on an economy that has been eroded by inefficient, government-directed spending and “investments.” Why should foreign creditors maintain confidence in the integrity of these paper claims? Only to the extent that their economies are even worse off. And in the case of China, that’s probably true.

As global government interest expense climbed, gold quietly followed it higher. The IIF estimates that interest costs on government debt now run at nearly $4.9 trillion annually. Over the same span, gold prices have tracked that burden almost one-for-one.

Silver has recently gone along for the ride, with even more enthusiasm.

Since early 2023, Japan’s 10-year government bond yield has risen roughly 150 basis points, touching levels not seen since the 1990s.

Over that same period, gold prices have surged about 135%, while silver is up roughly 175%. Zoom out two years, and the divergence becomes starker still: gold up 114%, silver up 178%, while the S&P 500 gained 44%.

According to the American Association of Individual Investors, the average retail investor has about a 70% allocation to stocks. That’s well over the traditional 60/40 split between stocks and bonds. Even a 60/40 allocation ignores real estate, gold, collectibles, and private assets.

A pullback in the 10% range – which is likely in any given year – will prompt investors to scream as if it’s the end of the world.

Our “panic now, avoid the rush” strategy is simple.

Take tech profits off the table, raise some cash, and focus on industry-leading companies that pay dividends. Roll those dividends up and use compounding to your overall portfolio’s advantage.

Back in April, when we published what we called the Trump Great Reset Strategy, we described the grand realignment we believed President Trump and his acolytes were embarking on in three phases.

At the time, it read like a conceptual map. As the months passed, it began to feel like a set of operating instructions written in advance of turbulence.

Silver has recently gone along for the ride, with even more enthusiasm.

Since early 2023, Japan’s 10-year government bond yield has risen roughly 150 basis points, touching levels not seen since the 1990s.

A pullback in the 10% range – which is likely in any given year – will prompt investors to scream as if it’s the end of the world.

Our “panic now, avoid the rush” strategy is simple.

Take tech profits off the table, raise some cash, and focus on industry-leading companies that pay dividends. Roll those dividends up and use compounding to your overall portfolio’s advantage.