Should the government be gambling with your tax dollars on crypto?
That's the question at the heart of my latest podcast episode, where I sat down with Dr. Jack Castonguay from Hofstra University to discuss the proposed "Strategic Bitcoin Reserve" – a plan that would have the US Treasury buy up 1 million Bitcoin over five years.
Three key takeaways from our conversation:
The high-risk reality: Unlike strategic oil reserves or foreign currency holdings (which have clear practical uses), Bitcoin's only potential benefit is speculative price gains.
Who's on the other side of the trade? Since crypto is anonymous, the US could unknowingly be buying from adversaries like Russia, China, North Korea, or even terrorist groups.
States are joining the frenzy: Bills in 13 states, including my home state of Arizona, propose investing 5-10% of public funds in crypto. Imagine your state taking 10% of its budget for services and using it to speculate instead!
Jack says this legislative push feels like a last-ditch effort by the crypto lobby to prop up prices as they run out of retail investors. What’s your take?
