U.S. Tariffs Could Be Used to Buy Bitcoin, Predicts Fred Krueger
The post U.S. Tariffs Could Be Used to Buy Bitcoin, Predicts Fred Krueger appeared first on Coinpedia Fintech News
A bold prediction by entrepreneur Fred Krueger is stirring debate in crypto circles. He believes the United States could one day use tariff revenue to buy Bitcoin, a move that could completely reshape global markets.
Tariffs as a Bitcoin War Chest
U.S. Commerce Chief Howard Lutnick recently said tariffs could generate as much as $50 billion per month. Krueger argues that if even part of this money flowed into Bitcoin, the scale would be historic.
Such large-scale buying could send Bitcoin prices soaring. Krueger believes this kind of demand would change Bitcoin’s behavior forever.
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U.S. Strategic Bitcoin Reserve
The idea isn’t completely new. Earlier this year, the U.S. created a strategic Bitcoin reserve using confiscated coins. Treasury Secretary Scott Bessent has given mixed signals about future purchases, but recently left the door open for “budget-neutral ways to add more Bitcoin.”
That’s why Krueger suggests tariff revenue, which doesn’t directly impact taxpayers, could be the perfect funding source.
Is It Realistic?
Critics say the plan is unlikely, warning it could create political backlash and financial instability. Still, the very fact that this idea is being discussed shows how far Bitcoin has come.
Whether or not the U.S. takes Krueger’s advice, the speculation highlights Bitcoin’s shift from a fringe asset to a serious policy discussion.
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FAQs
At current prices, $50B in monthly tariff revenue could purchase ~400,000 BTC, vastly exceeding the ~19,000 new coins mined daily.
Such large, consistent buying could break Bitcoin’s existing price models, sending it soaring and establishing it as a macro asset.
Critics are skeptical, citing potential political and financial instability. However, the discussion shows Bitcoin is shifting from a fringe asset to a serious policy topic.
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Lawmakers in the US House of Representatives and Senate met with cryptocurrency industry leaders in three separate roundtable events this week. Members of the US Congress met with key figures in the cryptocurrency industry to discuss issues and potential laws related to the establishment of a strategic Bitcoin reserve and a market structure.On Tuesday, a group of lawmakers that included Alaska Representative Nick Begich and Ohio Senator Bernie Moreno met with Strategy co-founder Michael Saylor and others in a roundtable event regarding the BITCOIN Act, a bill to establish a strategic Bitcoin (BTC) reserve. The discussion was hosted by the advocacy organization Digital Chamber and its affiliates, the Digital Power Network and Bitcoin Treasury Council.“Legislators and the executives at yesterday’s roundtable agree, there is a need [for] a Strategic Bitcoin Reserve law to ensure its longevity for America’s financial future,” Hailey Miller, director of government affairs and public policy at Digital Power Network, told Cointelegraph. “Most attendees are looking for next steps, which may mean including the SBR within the broader policy frameworks already advancing.“Read more
