{"id":630074,"date":"2026-07-04T18:00:00","date_gmt":"2026-07-04T18:00:00","guid":{"rendered":"https:\/\/buglecall.org\/?p=630074"},"modified":"2026-07-04T18:00:00","modified_gmt":"2026-07-04T18:00:00","slug":"could-the-government-use-tax-dollars-to-bail-out-bitcoin-2","status":"publish","type":"post","link":"https:\/\/buglecall.org\/?p=630074","title":{"rendered":"Could The Government Use Tax Dollars To Bail Out Bitcoin?"},"content":{"rendered":"

Could The Government Use Tax Dollars To Bail Out Bitcoin?<\/span><\/p>\n

\n

\u00a0Submitted by QTR’s Fringe Finance<\/a><\/em><\/p>\n

There was a time when Bitcoin\u2019s biggest selling point was that it existed outside the financial system. No governments. No central banks. No bailouts. No \u201ctoo big to fail.\u201d It was supposed to be the antidote to everything that happened in 2008. In fact, I\u00a0once argued<\/a>\u00a0that another 2008 is what could\u00a0standardize\u00a0<\/em>bitcoin.<\/p>\n

Fast forward fifteen years, and we\u2019ve somehow reached the point where I\u2019m asking myself whether the last remaining bailout for crypto might actually be…the U.S. government. Think about how unbelievably sickening that would be. It\u2019s the terminus I kept arriving at yesterday while thinking about the only way Strategy would be able to survive if Bitcoin continued getting decimated from these prices. And sadly, the idea isn\u2019t really unimaginable given our current administration\u2019s ties with crypto.<\/p>\n

\"\"<\/a><\/p>\n

Yesterday I\u00a0wrote<\/a>\u00a0that Strategy\u2019s new capital framework effectively buys the company time. And to be fair, it does. Management rolled out dedicated cash reserves, formal dividend policies, billions of dollars in buyback authorizations, and what at least appears to be a more disciplined approach to capital allocation.<\/p>\n

But none of those changes alter the one variable that ultimately matters: Bitcoin\u2019s price. Everything rests on the price of Bitcoin, from Strategy\u2019s trajectory as a public company, to some of\u00a0Bitcoin\u2019s biggest and most well known advocates using it as a gauge as to when they would admit defeat on the long thesis<\/a>.<\/p>\n

Strategy has now openly acknowledged that Bitcoin is no longer untouchable. For years, Strategy built its identity around buying Bitcoin and never selling it. Now it has explicitly stated that those holdings can be monetized if necessary to fund dividends, replenish reserves, service obligations, or support buybacks. If Bitcoin keeps climbing, nobody will care. If Bitcoin starts falling hard, suddenly everyone will.<\/p>\n

Selling Bitcoin to raise liquidity sounds perfectly prudent until you\u2019re forced to sell into a declining market. At that point, the math starts working against you. Selling creates additional supply. Additional supply can pressure prices. Lower prices reduce the value of Strategy\u2019s largest asset, potentially creating an even greater need for liquidity. That can lead to more selling, which creates more pressure, and before long you\u2019ve got the financial equivalent of a dog chasing its own tail into a neighborhood wood chipper.<\/p>\n

I\u2019m not predicting that\u2019s how this ends. Bitcoin is a massive global asset, and Strategy alone isn\u2019t going to dictate where it trades. But the possibility now officially exists because management has crossed a line that investors once assumed would never be crossed. Bitcoin is no longer sacred. It\u2019s now part of the liquidity toolkit.<\/p>\n

That raises a much bigger question. What happens after every private-sector solution has been exhausted? What happens when the equity markets stop funding you, the preferred market dries up, convertible debt becomes too expensive, and you\u2019ve already started selling Bitcoin? Who\u2019s the buyer of last resort?<\/p>\n

\n

Historically, there\u2019s almost always been one. Banks got one. Money market funds got one. The auto industry got one. Regional banks got one. The corporate bond market got one. During COVID we were buying damn near everything that wasn\u2019t bolted to the floor. Whenever markets become sufficiently interconnected with the rest of the financial system, Washington inevitably starts talking about \u201csystemic risk,\u201d and once those two words enter the conversation, almost anything becomes possible. And remember, back in August of last year, I already asked whether or not Bitcoin was too deep in the fabric of the U.S. financial system:\u00a0Is Bitcoin Too Deep In The Fabric Of The U.S. Financial System?<\/a><\/p>\n

So why not a Bitcoin bailout from the government?<\/p>\n

\"\"<\/a><\/p>\n

The Trump administration has developed some of the closest ties to the cryptocurrency industry of any U.S. administration in history. It has installed officials viewed as supportive of digital assets, pushed for clearer rules governing the industry, and repeatedly framed Bitcoin and blockchain innovation as strategic priorities for American competitiveness.<\/p>\n

Trump himself has gone from skeptic to outspoken advocate, publicly backing Bitcoin mining, supporting the creation of a national strategic Bitcoin reserve, and cultivating close relationships with many of the industry\u2019s largest executives and investors. The result is an administration that is no longer merely tolerant of crypto, but one that is increasingly politically invested in its success, making the industry\u2019s fortunes more closely aligned with the White House than at any point since Bitcoin was created.<\/p>\n

I can already imagine the press conference.\u00a0\u201cToday, in order to preserve financial stability, the United States government is announcing a Strategic Bitcoin Stabilization Facility.\u201d<\/em><\/p>\n

I honestly think I\u2019d oscillate between laughing, crying and vomiting. The irony would be almost too perfect. The asset invented to escape governments…saved by the government. The people screaming \u201cEnd the Fed\u201d…saved by the Fed. The same crowd that spent fifteen years explaining why Bitcoin doesn\u2019t need the traditional financial system suddenly hoping Washington becomes the biggest whale on Earth.<\/p>\n

You couldn\u2019t write satire this good.<\/p>\n

Politically, I think it would be suicide. The government would be accused of bailing out crypto bros. Every taxpayer would ask why Washington is spending public money supporting digital assets while families are still struggling with the cost of living. It would probably become one of the most universally despised bailouts in modern American history. Democrats\u00a0would run rampant in trying to regulate and suffocate crypto<\/a>\u00a0if they won in 2028.\u00a0And yet…I can\u2019t completely dismiss it.<\/strong><\/p>\n

We\u2019ve spent the better part of two decades responding to every financial emergency with the same basic solution: print money, borrow money, guarantee money, or throw taxpayer money at the problem until everyone stops panicking. If crypto continues weaving itself into public companies, pension funds, ETFs, banks, retirement accounts, and increasingly complex financing structures, politicians will eventually start arguing that the consequences of doing nothing are worse than the consequences of stepping in.<\/p>\n

The funny part is that, by Washington standards, Bitcoin wouldn\u2019t even be that expensive to rescue. With a market capitalization hovering around a $1.2 trillion dollars, you\u2019re talking about an amount of money that barely registers compared to the trillions we\u2019ve borrowed, printed, guaranteed, and spent over the past twenty years.<\/p>\n

I\u2019m not saying the government\u00a0would<\/strong>\u00a0do it, but it\u2019s amazing that we\u2019re now living in a world where it\u2019s no longer completely absurd to imagine the conversation taking place.<\/p>\n

If Strategy\u2019s increasingly elaborate financial engineering ultimately isn\u2019t enough…if Bitcoin falls much faster and much farther than anyone expects…and if every private buyer finally disappears, the last remaining bailout may come from the very institution Bitcoin was created to replace.<\/p>\n

And if that day ever comes, don\u2019t tell me it\u2019s impossible.\u00a0The government has done a lot dumber sh*t with a lot more money.<\/strong><\/p>\n

\n

—<\/p>\n<\/figure>\n

QTR\u2019s Disclaimer<\/em>:\u00a0Please read my full legal disclaimer\u00a0on my About page here<\/a><\/em>.\u00a0This post represents my opinions only.<\/em>\u00a0In addition, please understand I am an idiot and often get things wrong and lose money. I may own or transact in any names mentioned in this piece at any time without warning. Contributor posts and aggregated posts have been hand selected by me, have not been fact checked and are the opinions of their authors. They are either submitted to QTR by their author, reprinted under a\u00a0Creative Commons license<\/a>\u00a0with my best effort to uphold what the license asks, or with the permission of the author.<\/em><\/p>\n

This is not a recommendation to buy or sell any stocks or securities, just my opinions. I often lose money on positions I trade\/invest in. I may add any name mentioned in this article and sell any name mentioned in this piece at any time, without further warning. None of this is a solicitation to buy or sell securities. I may or may not own names I write about and are watching. Sometimes I\u2019m bullish without owning things, sometimes I\u2019m bearish and do own things. Just assume my positions could be exactly the opposite of what you think they are just in case. If I\u2019m long I could quickly be short and vice versa. I won\u2019t update my positions.<\/em><\/p>\n

As of May 20, 2026 I personally no longer actively trade (read my story here<\/a>). My\u00a0investing\/saving is done by recurring contributions mostly to sector ETFs and a few select equities, trusted third parties who oversee my accounts, and advisors<\/a>. Such advisors or funds, through individual equities, options, index funds, mutual funds, ETFs, or other securities, may have positions in, exposure to, or holdings of names mentioned herein that I know nothing about. Basically, via index funds, ETFs and individual equities it is possible I could own, have exposure to, or not own anything at any point. As of the same date, May 20, 2026, in an\u00a0attempt to lead a healthier lifestyle<\/a>, I\u2019ve also excluded myself from fantasy sports, sports betting, online and in-person casinos and prediction markets.<\/em><\/p>\n

And all positions can change immediately as soon as I publish this, with or without notice and at any point I can be long, short or neutral on any position. You are on your own. Do not make decisions based on my blog. I exist on the fringe. If you see numbers and calculations of any sort, assume they are wrong and double check them. I failed Algebra in 8th grade and topped off my high school math accolades by getting a D- in remedial Calculus my senior year, before becoming an English major in college so I could bullshit my way through things easier.<\/em><\/p>\n

The publisher does not guarantee the accuracy or completeness of the information provided in this page. These are not the opinions of any of my employers, partners, or associates. I did my best to be honest about my disclosures but can\u2019t guarantee I am right; I write these posts after a couple beers sometimes. I edit after my posts are published because I\u2019m impatient and lazy, so if you see a typo, check back in a half hour. Also, I just straight up get shit wrong a lot. I mention it twice because it\u2019s that important.<\/em><\/p>\n<\/figure>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nSat, 07\/04\/2026 – 14:00<\/span><\/p>","protected":false},"excerpt":{"rendered":"

Could The Government Use Tax Dollars To Bail Out Bitcoin? \u00a0Submitted by QTR’s Fringe Finance There was a time when Bitcoin\u2019s biggest selling point was that it existed outside the financial system. No governments. No central banks. No bailouts. No \u201ctoo big to fail.\u201d It was supposed to be the antidote to everything that happened… Continue reading Could The Government Use Tax Dollars To Bail Out Bitcoin?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":630066,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[18,19,10,21,12,11,9],"tags":[],"class_list":["post-630074","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cancel-culture","category-censorship","category-civil-liberties","category-election-integrity","category-equal-justice","category-free-speech","category-religious-freedom","entry"],"_links":{"self":[{"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/posts\/630074","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=630074"}],"version-history":[{"count":0,"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/posts\/630074\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/media\/630066"}],"wp:attachment":[{"href":"https:\/\/buglecall.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=630074"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=630074"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=630074"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}