Ai explain the President Trump gold revaluation “Bitcoin order”, and how that will affect the value of the dollar. –
Quick Answer: President Trump’s “Bitcoin order” refers to his March 2025 executive order establishing a U.S. Strategic Bitcoin Reserve, partly funded by revaluing America’s gold holdings. The idea is to mark U.S. gold reserves at current market prices (far higher than their decades‑old book value) and use that accounting gain to acquire Bitcoin. This could strengthen U.S. digital asset reserves but risks undermining confidence in the dollar if investors see it as a move away from traditional fiat stability.
What the “Gold Revaluation” Means
Gold reset proposal: U.S. gold reserves are currently valued on government books at outdated prices (around $42 per ounce). Revaluing them at today’s market price (over $2,000/oz) would instantly create trillions in “paper gains”.
Funding Bitcoin purchases: Those gains could be used to issue new gold certificates or otherwise justify acquiring Bitcoin without adding to the federal deficit.
Strategic Bitcoin Reserve: Trump’s order created a reserve of government‑owned Bitcoin, initially seeded with ~200,000 BTC seized in criminal cases. The revaluation plan would expand that reserve.
Potential Effects on the Dollar
Short‑term boost in confidence: Revaluing gold could make U.S. balance sheets look stronger, reassuring creditors that America has more collateral.
Shift in reserve composition: Adding Bitcoin alongside gold signals a diversification away from the dollar as the sole pillar of U.S. monetary strength.
Risk of dollar debasement: If investors believe the U.S. is moving toward a gold‑ or Bitcoin‑backed system, they may question the long‑term role of fiat dollars. This could weaken demand for Treasuries and push up borrowing costs.
Volatility spillover: Bitcoin’s price swings could translate into perceived instability in U.S. reserves, potentially eroding trust in the dollar’s reliability as the world’s reserve currency.
Big Picture
Supporters argue this is a modern Bretton Woods‑style reset, anchoring U.S. reserves in scarce assets like gold and Bitcoin.
Critics warn it’s a “lousy trade” that risks destabilizing the dollar by tying it to volatile crypto markets.
The dollar’s value will depend on whether global investors see this as strengthening U.S. reserves or as a sign of desperation amid ballooning debt (projected to exceed $50 trillion by 2033).
What to Watch
Global reaction: If foreign central banks start diversifying away from dollars faster, the greenback could weaken.
Bitcoin volatility: Sharp drops in BTC could undermine confidence in the reserve strategy.
Policy follow‑through: Whether Congress codifies the “BITCOIN Act” or keeps this as an executive‑level experiment will determine its durability.
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SCOD Note: Fiat currency of the US 5-Eyes Empire is probably more backed by military force threat, than economic assets. Therefore this gold-bitcoin executive order might not create hyper-inflation, more than the National Debt, general economic depression, printing money, and real-estate bubbles already have. However it could also be a global banking rug pull plan, like during the previous world wars.