The Flaws of the Lummis Bitcoin Act.
The Flaws of the Lummis Bitcoin Act. was Written By Justin Bechler. You can catch him on X @1914ad
Have you read and carefully analysed the Lummis Bitcoin Act of 2024? I have, and I must explain why this bill is not only philosophically misguided but also practically preposterous. Furthermore, I will shed light on who is funding Senator Cynthia Lummis and the potential conflicts of interest behind this legislation.
What the Bill Proposes
In simple terms, the bill calls for the establishment of a Strategic Bitcoin Reserve, requiring the United States to purchase and hold 1 million Bitcoin over five years. This is intended to enhance national financial security and diversify reserves. Additionally, the bill mandates a 20-year minimum holding period and proposes using Federal Reserve resources to offset costs, signaling a shift toward Bitcoin as a strategic asset.
Why the Bill is Fundamentally Flawed
It Signals Weakness, Not Strength
By proposing to exchange U.S. dollars for Bitcoin, the U.S. government would effectively be admitting that Bitcoin is superior to the dollar. This would send a catastrophic message to the world. The dollar’s dominance as the global reserve currency is built on trust and stability. If the United States starts stockpiling Bitcoin, it would accelerate the decline of the dollar and fast track Bitcoin’s rise as the global reserve currency.
The Bill is Politically Dead on Arrival
The bill has zero chance of passing Congress. Most politicians do not understand Bitcoin, and those who do are unlikely to support legislation that undermines the dollar’s dominance. The proposal to use taxpayer money to buy Bitcoin would be seen as a reckless gamble and would face fierce opposition from both Democrats and Republicans.
Even if the bill somehow passed, it would face legal and logistical challenges. The Federal Reserve, whose mission is to protect the dollar, would never allow its resources to be used for Bitcoin purchases. The idea of using Federal Reserve remittances and gold certificates to fund Bitcoin acquisitions is ludicrous.
The U.S. Government Cannot Be Trusted with Bitcoin
The U.S. government has a long history of monetary mismanagement, from the Federal Reserve’s creation in 1913 to inflationary policies that erode the dollar's value. Bitcoin, by contrast, is hard money-scarce, immutable, and resistant to manipulation.
Governments operate on short-term election cycles, not long term financial discipline. There is no guarantee that future administrations won’t cave to political pressure and liquidate Bitcoin holdings, destabilizing the market and undermining confidence in Bitcoin itself.
Fiscal and Political Fantasy
Expecting Congress to pass a bill committing trillions of dollars to Bitcoin is fantasy. Lawmakers can barely agree on essential budget allocations, let alone a massive gamble on a volatile and decentralized asset. The idea that they would present such a plan to a public that remains skeptical and largely uninformed about Bitcoin is delusional.
Who is Funding Senator Lummis?
Perhaps the most concerning aspect of this bill is that Lummis is funded by Multicoin Capital and Andreessen Horowitz-two of the most influential and aggressive crypto venture capital firms. This raises serious ethical concerns about her motivations and the integrity of the legislation.
These firms have a vested interest in Bitcoin and other cryptocurrencies gaining mainstream adoption. By sponsoring a bill that would funnel trillions of taxpayer dollars into Bitcoin, Lummis is effectively using her position to benefit her financial backers.
This is regulatory capture-where lawmakers push policies that serve their donors rather than the public. The Bitcoin Act is less about financial security and more about creating a tax payer-funded windfall for crypto VC’s.
The Hypocrisy of the Bill
The irony is staggering: Bitcoin was created to free individuals from government and central bank control, yet this bill proposes a massive state intervention into Bitcoin ownership. This directly contradicts Bitcoin’s fundamental ethos of decentralization and permissionless money.
If the government owns a substantial portion of Bitcoin, it would centralize control over a system designed to resist state interference. This would turn Bitcoin into just another instrument of government control-an outcome entirely at odds with its original purpose.
The Bitcoin Act of 2024 is a pipe dream that has no chance of becoming law. The U.S. government will never voluntarily signal the decline of the dollar by adopting Bitcoin as a strategic reserve asset.
Bitcoin belongs to the people, not politicians or their VC backers. It represents an escape from inflation, financial repression, and centralized control. By opposing this bill, we defend the future of money itself-a future where individuals, not governments, control their wealth and destiny.
Spread the word: Bitcoin is not for the state. It’s for the people.
The Flaws of the Lummis Bitcoin Act. was Written By Justin Bechler. You can catch him on X @1914ad
