Trace Mayer on Bitcoin and U.S. Government Strategies

Trace Mayer, a prominent early bitcoin podcaster and advocate, who started investing in bitcoin at $0.25, questions the U.S. government’s ability to amass a significant portion of the bitcoin supply.

While figures like Strategy Executive Chair Michael Saylor and Senator Cynthia Lummis have suggested that acquiring 5 million BTC is possible and even beneficial for the country, Mayer expressed skepticism in a recent interview on the Supply Shock podcast.

During his discussion with host Pete Rizzo at the Digital Asset Summit in New York, Mayer, believed to hold over 25,000 BTC, highlighted the potential repercussions on global bitcoin prices. He stated:

> “They would have a hard time… Where are they going to get 5 million coins? How many coins got added into the ETFs?… Meanwhile, the price moved from $30,000 to $80,000.”

Mayer proposed alternative approaches for encouraging government involvement in bitcoin. He suggested exemptions from capital gains tax on crypto if taxes are paid using bitcoin, arguing against the government making aggressive purchases in the market.

Acknowledging bitcoin as a “geopolitical asset,” Mayer questioned the necessity for the U.S. to hasten its dominance in the cryptocurrency realm. He remarked, “Why would it be in the interest of the U.S. to accelerate that any faster than it needs to?”

Mayer speculated that the U.S. could maintain the dollar’s supremacy while also integrating bitcoin into the financial framework:

> “Keep the world reserve currency, drain all the other nations of their physical bullion, and the thing that could potentially challenge gold, dominate that too.”

He advocated for having bitcoin incorporated into corporate balance sheets, encouraging financial innovation, and ultimately extending U.S. influence over other nations’ monetary policies through stablecoins.

Mayer emphasized that bitcoin, as a form of money, represents power in the global arena, and while uncertain about its future effects on global dynamics, he is optimistic about its potential role as a “world reserve settlement currency.”