BTC Passes $93,000 to Hit New All-Time High While Bitcoin Game Theory Is Starting to Play Out

Many in the Bitcoin community called this price rally the Trump pump—since getting a pro-Bitcoin U.S. president is considered a very bullish sign for crypto, and I’ll tell you all about it in this issue of Proof of Words. 

The Trump administration is very vocal and positively attuned to Bitcoin. There is even a bill by Senator Lummis proposing that the U.S. buys 1 million BTC in the coming years as a strategic treasury reserve asset. 

If they go through with it, this will–in my humble opinion–kickstart nation-state Bitcoin adoption worldwide as more and more countries will follow in America’s footsteps.

Alright, let’s jump right in! 

The Trump Pump is real: Bitcoin hit a new all-time high! 📈

I wrote about the U.S. presidential election in my last newsletter two weeks ago, just days before it happened. 

With the election over and Donald Trump securing a landslide victory, we could now watch and wait for Bitcoin’s response.

And boy, oh boy, it didn’t disappoint! 

When initial reports started to come in that Trump was in the lead, the price of Bitcoin already started to rally, and once his win was officially confirmed, Bitcoin rallied by more than 10%. 

While writing this newsletter, one Bitcoin is worth more than $90,000! 

But that’s not even the biggest story! We knew in advance that the Trump campaign was quite vocal about being in favor of Bitcoin and digital assets.

One of Trump’s pro-Bitcoin allies is Senator Cynthia Lummis. She’s the brains behind the strategic Bitcoin reserve bill. 

Senator Lummis wants to buy 1 million BTC in the coming years and use it as a treasury reserve asset. 

She’s also been in the news this week with her proposal of selling some of the gold reserves to buy Bitcoin. 

If the U.S. government starts buying BTC, we would likely see incredible FOMO among institutions and retail investors, who would inevitably (very likely) buy more Bitcoin. 

We, at Samara Asset Group, also see Bitcoin's immense potential as a treasury reserve asset (that’s why we hold it) and are very much in support of this decision. 

The U.S. already has 213,297 BTC from various confiscations. Therefore, the U.S. Treasury would still have some way to go to get to the 1 million mark, but it’s not out of reach. 

All of this positive news and the immense reaction by the markets to the elections make me very bullish. 

We’re just $10,000 away from Bitcoin reaching six figures. Just typing this out is crazy! 

Considering that all of these plans by the U.S. governments and the reactions by other nation-states - more on that in the next paragraph - could be the kickstart to a crazy twelve months. 

Bitcoin Game theory could start kicking in soon & more countries will buy Bitcoin 🤯

I already mentioned the Bitcoin plans by the U.S. and hinted at how this could significantly impact other nation-states. 

I believe that when the United States starts buying Bitcoin as a treasury asset, other countries will very likely follow suit. 

Why? 

Because game theory would come into play. 

Game theory refers to understanding decisions in situations where players’ choices affect one another. It helps to map out the best moves and possible outcomes, whether players are collaborating, competing, or a mix of both. 

So, what does that mean in the context of nation-state Bitcoin adoption? 

We already have a few nation-states, such as El Salvador and Bhutan, who are holding or using Bitcoin. That’s awesome, but both countries are small on a global scale. 

If the U.S. were to start accumulating Bitcoin as a treasury reserve asset now, other nations would follow. 

Not because the U.S. is the cool kid on the block but because it’s still one of the world's biggest economies and political superpowers.

Whatever the U.S. does, other countries usually mimic. This is not something only I say, but it is also something political figures say. 

German politician Joana Cotar said that European nations would likely follow the U.S.’s lead and likely start buying Bitcoin, too, if their counterpart from across the pond would.

Not only would Bitcoin make sense as a treasury reserve asset from a financial perspective—it could actually help reduce our government debt—but it could also be a strategic commodity reserve for other emergencies. 

Whether those emergencies are for national security, to become the leader in the mining and energy markets, or to do something as simple as backing the U.S. Dollar with Bitcoin. 

Considering that all fiat currencies are heading towards zero and inflating more and more, having a Bitcoin stack against this could actually help the U.S. to be the last one standing. 

The countries that decide against Bitcoin and ignore it now will be the ones that will either go bankrupt or, in the end, have to get back in at a much higher price. 

You also read about some rumors on X this week that an unknown nation-state is already buying Bitcoin. Nothing has been verified, though. But I wouldn’t be surprised if that were the case. As I mentioned above, this is Bitcoin Game Theory playing out in reality. 

All we can do now is lean back and observe which nation-state reacts the fastest. 

The German Bitcoin Association and its bold plans to “orange pill” the German Government 🇩🇪

In July, the German government, or to be exact, the federal state of Saxony-Anhalt, sold all of its Bitcoin. 

They “acquired” them through confiscation and held more than 50,000 BTC. They sold them at roughly $55,000 per Bitcoin.

Now, Bitcoin is worth 35% more than back then. Ouch! 

However, a few German Bitcoiners are eager to educate the German government about Bitcoin and try to convince them to use it as a treasury reserve asset. 

Philipp Hartmannsgruber is one of these Bitcoiners. He’s part of the German Bitcoin Association and was the latest guest on my Proof of Words podcast. 

We discussed his Bitcoin journey, why he decided to get involved in the German Bitcoin Association, why Germany is so unique in its crypto regulation, and how the association will work to get Bitcoin back on the government's balance sheet.

Tune in here to watch the full episode!

Your fellow stacker in sats, 

Patrick Lowry