Should the US Treasury Invest in Bitcoin?

There’s been a lot of talk lately about whether the US Treasury should be investing in bitcoin. Wyoming Senator Cynthia Lummis is a big advocate for the idea, but not everyone is on board. On a recent episode of Capitol Gains, Chris Whalen from Whalen Global Advisors shared his thoughts on the matter. He pointed out that back in 1933, during Franklin Roosevelt’s time, there was deflation. But today, we’re facing inflation, which is why the price of bitcoin has skyrocketed to $100,000. According to Whalen, bitcoin is a strong indicator of inflation.

While some are pushing for the Treasury to invest in cryptocurrency, Whalen thinks the focus should be on gold instead. He suggests that the Treasury should buy gold and sell credit default swaps. By doing so, he believes we can drive up the price of gold to where it should be, much higher than it currently is. Whalen also mentioned that credit default swaps for the United States are trading at 40 basis points, which is twice the rate of Berkshire Hathaway. This could be a red flag, indicating potential problems in the credit markets that need to be addressed.

Whalen expressed his concern that not enough people on Capitol Hill truly understand finance. In his opinion, bitcoin isn’t the solution—it’s the problem. To learn more about this topic, be sure to check out the full episode of Capitol Gains. For expert insights and the latest market news, head over to the Capitol Gains website.