🇺🇸 🇪🇺 War, Bitcoin & Power: US Proof-of-Work vs. EU Proof-of-Weapons | #BitcoinHardTalk Episode 73

Mar 07, 2025
 

Hey hey, Bitcoin Wealth Builders!

This week, the financial chessboard is shifting fast. We’ve got the United States announcing a Bitcoin Strategic Reserve, the European Union funding an €800 billion war economy, and the global macro landscape being rewritten as the EuroDollar system shifts. Meanwhile, Zelensky’s humiliation at the White House has officially marked the handover of the Ukraine proxy war to the EU, while Washington shifts its focus to escalating tensions in the Middle East.

There’s a battle raging between Bitcoin proof-of-work and fiat proof-of-weapons, between decentralized Bitcoin adoption and state-controlled financial manipulation. The US is making moves toward Bitcoin—but is this a genuine shift toward sound money, or just another asset-stripping operation to funnel taxpayer dollars into the hands of insiders?

Let’s break down what’s really happening.

This Week in Bitcoin: The US Bitcoin Strategic Reserve & The Next Phase of the Financial War

The biggest headline of the week was the White House announcing America’s first-ever Bitcoin Strategic Reserve. On the surface, this looks like a major win—Bitcoin being recognized as a strategic asset by the US government. But dig deeper, and the story gets more complicated.

The reserve will be capitalized using Bitcoin confiscated in criminal and civil asset forfeitures, according to Trump’s newly appointed Crypto Czar, David Sacks. Right now, the US government is sitting on over 200,000 BTC, mostly seized from Silk Road and other enforcement actions. But there’s never been a full audit of these holdings, and no one really knows how much Bitcoin the government actually controls.

At the same time, altcoins like Solana, XRP, and Cardano were pumped and dumped on news that they would also be included in the US digital asset stockpile. And here’s the real concern—if this is just another pre-mined coin extraction scheme, it could be the biggest taxpayer-funded rug pull of all time.

Trump’s executive order also establishes a US Digital Asset Stockpile, where all confiscated cryptocurrencies will be stored. But unlike Bitcoin, the government has no plans to acquire more of these altcoins—just to hold what’s been seized. That’s an interesting signal. If the US government is willing to stockpile Bitcoin but ignore the rest of the crypto market, that tells us everything we need to know about how they see long-term value.

But let’s not be naïve. There’s also a dangerous game being played here. Some analysts are speculating that the US is positioning itself to control proof-of-stake, using its power over Ethereum and stablecoins to consolidate financial control under government-approved digital assets. If that’s the case, we could see a regulatory push toward state-sanctioned crypto.

Meanwhile, Germany has taken the opposite approach—offloading Bitcoin to fund its war economy. The contrast is staggering. While the US maybe quietly accumulating Bitcoin, Europe is dumping it to finance its new proof-of-weapons military budget. The EU has committed €800 billion to defense spending, signaling that war is now their economic stimulus model. One side is stacking Bitcoin; the other is burning fiat for war.

So the big question remains—is the US Bitcoin Strategic Reserve a move toward sound money, or is it just another political game?

This Week in Macro: The EuroDollar System Collapse & Trump’s Tariff War

The EuroDollar system is coming undone in real time, and Trump’s latest moves are accelerating the process.

The European Central Bank is now using war as its new form of economic stimulus, injecting €800 billion into military spending. This isn’t just about security—it’s a fiat-driven financial model where governments print money, fund military production, and call it economic growth. Historically, this has always ended in disaster.

Meanwhile, in the US, Trump’s tariffs on China and Europe are further dismantling the global financial order. Trade wars are back, and Washington’s America-first policies are triggering shifts in capital flows.

US markets are weakening, while European stocks are rallying thanks to massive government spending on weapons production. This is a dangerous game—war-driven stimulus might look good in the short term, but it’s a guaranteed path to long-term economic instability.

And then we have the IMF being used as a financial weapon, once again trying to force El Salvador to stop buying Bitcoin as a condition for further funding. But Bukele isn’t backing down. In fact, El Salvador continues increasing its Bitcoin reserves, directly challenging the global fiat establishment.

At the same time, rumors are emerging that BRICS nations are working on a Bitcoin-backed trade settlement system. China and Russia are already settling trades in non-dollar currencies, and if they move toward Bitcoin, that would be a major shift in global financial power.

This Week in Geopolitics: Zelensky’s White House Humiliation, BRICS Moves & The US-Israel Power Struggle

One of the most important geopolitical signals of the week was Zelensky’s humiliating White House visit.

What was meant to be a diplomatic meeting turned into a clear sign that the US is done financing Ukraine. The White House has now effectively handed over the Ukraine war to the EU, signaling that Washington has lost interest in maintaining this proxy war against Russia.

The UK immediately responded by signing a 100-year military and financial pact with Ukraine, further committing itself to a war that the US is slowly trying to exit. At the same time, Putin offered a rare minerals deal to the US, using Russia’s massive resource wealth as leverage in ongoing negotiations.

And while Ukraine fades from the front pages, the US focus is shifting toward escalating tensions in the Middle East.

Israel continues to defy international pressure, rejecting peace talks while Trump issues threats against Palestinians. Washington is now under growing diplomatic pressure, as China and Russia position themselves as alternative power brokers in the region.

This is where things get dangerous. If the US falls into an extended Middle East conflict, the financial implications could be catastrophic. The de-dollarization movement is accelerating, and if war disrupts energy markets, we could see another global economic crisis unfold.

Final Thoughts

The world is shifting fast. The US Bitcoin Strategic Reserve is a major milestone, but the real battle is about how governments plan to use Bitcoin—will it be for financial sovereignty, or will it be manipulated as part of a political agenda?

Meanwhile, the EuroDollar shift, Trump’s trade war, and Europe’s shift toward military-driven economic policies are accelerating the decline of the traditional financial system. And as Zelensky’s White House humiliation marked the shift in the Ukraine war, the global power balance is realigning before our eyes.

Bitcoin remains the ultimate hedge against economic shifts, war-driven finance, and AI-controlled monetary systems. But the real question is—will governments allow individuals to benefit from it, or will they try to control it for themselves?

Either way, the battle for monetary freedom is just getting started.

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Disclaimer

This blog was generated with the assistance of AI and is based on the content presented by Simon Dixon in BitcoinHardTalk Episode 73. The episode, which exceeded three hours in length, covered Simon Dixon’s analysis of the US Bitcoin Strategic Reserve, the shift of the EuroDollar system, Trump’s executive orders, and the shifting geopolitical landscape involving Ukraine, BRICS, and Middle East conflicts.

The views expressed in this blog reflect the insights and perspectives shared by Simon Dixon during the episode but should not be interpreted as financial, investment, legal, or political advice. Bitcoin and other digital assets are highly volatile and carry inherent risks. Readers should conduct their own research and consult with qualified professionals before making financial or investment decisions.

Additionally, the discussions on geopolitical events, financial crises, and intelligence operations are based on publicly available information, analysis, and expert opinions. While every effort is made to ensure accuracy, the evolving nature of global finance and geopolitics means that certain details may change over time. The inclusion of third-party sources or historical references does not imply endorsement or verification of their authenticity.

By reading this blog, you acknowledge that you are solely responsible for any actions you take based on the information presented. Neither Simon Dixon nor any affiliated individuals or entities shall be held liable for any outcomes resulting from financial decisions, trading activities, or interpretations of global events.

For personalized financial advice, always consult a licensed professional.

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