The Bitcoin for American Act: COMMENTARY RESPONSE TO THE INSPIRATOR

Two things can be true at the same time when it comes to government and Bitcoin. And after reading the Inspirator’s article — The Bitcoin for America Act: Pay Taxes With Bitcoin — it got me thinking in a couple of different directions.
Here’s the link to the post:

🇺🇸 “The Bitcoin for America Act: Pay Taxes in BTC… or Is Uncle Sam About to Hug Bitcoin to Death?”

His argument is basically this: the government is positioning itself to pull Bitcoin out of the hands of regular people, concentrate it in government-controlled institutions, and use a digital currency system to increase control over everyday life. And honestly, some of that concern isn’t crazy. We already see cash being phased out of everyday commerce. A ton of places simply don’t accept it anymore, and even though I’m libertarian on a lot of things, I’ve always believed that if you operate a business inside the United States and refuse to take the legal printed currency of the United States, that should be illegal. It’s the country’s money — not a suggestion.

But I digress.

The Government as a Bitcoin Whale? Probably Not.

The Inspirator suggests that if Americans start paying taxes in Bitcoin — without capital gains — the government could build up its own strategic Bitcoin reserve. In theory? Sure. In practice? We’ve seen this play out before.

Ohio tried a “pay your business taxes in crypto” program in 2018. It was barely used, riddled with administrative issues, and ultimately shut down. Then it was floated again, and again, no one used it. If the U.S. government wants to accumulate Bitcoin through voluntary tax payments, good luck. You’re not going to get enough participation to build any meaningful reserve. People aren’t willingly parting with their Bitcoin.

Why?
Because number go up!

Nobody wants to spend an appreciating asset when everything is priced in dollars.

That’s the real friction.

But Here’s the Other Truth…

Everything Bitcoiners have been asking for is exactly what these new tax and de minimis proposals are trying to allow.

Warren Davidson’s bill removes capital gains for small crypto transactions — the kind of daily spending and peer-to-peer payments that actually make Bitcoin usable as electronic cash. You want to buy a coffee? Pay a contractor? Tip someone? Send a friend money? Under that model, it’s treated like spending cash, not selling a stock.

That’s literally Satoshi’s vision: peer-to-peer electronic cash.

So when the government says, “Hey, we’re going to let you use Bitcoin like cash,” and Bitcoin Twitter immediately screams “conspiracy,” I have to say… we can’t have it both ways.

We want Bitcoin to function as money.
But when the government says “okay,” we say, “no, that’s a trap.”

The Inspirator’s Fear: Custody, Control, and Confiscation

The Inspirator lays out a theoretical five-step playbook for how the government could slowly cage Bitcoin:

1. Bitcoin is cool. You can pay taxes with it.

2. For safety, large holders must use custodians.

3. For national security, big balances must be reported.

4. For emergencies, the government needs temporary access to some Bitcoin.

5. “Thanks, we own it now.” (No tanks. Just paperwork.)

Is that possible? Absolutely.
Would the U.S. prefer control over an outside-the-system asset? Of course.

But here’s the part most people forget:

Bitcoin Already Has the Escape Hatch

As long as people actually self-custody their Bitcoin — real keys, not ETF IOUs — the government cannot meaningfully cage it.
They can regulate exchanges.
They can regulate institutions.
They can regulate custodians.
They can regulate the on-ramps and off-ramps.

But they cannot regulate the protocol or your cold wallet.

And they can’t stop transactions that don’t touch the banking system.
They can’t shut down a peer-to-peer broadcast network that can route through satellites, mesh nets, or even SMS relays.
And they can’t confiscate Bitcoin they don’t know you have.

That’s the entire point of Bitcoin.

Governments Will Never Embrace a Tool That Removes Their Power

No government — anywhere — is going to look at a monetary system designed to limit surveillance, prevent asset seizure, and remove political influence and say:

“Wow, incredible, let’s build our future on this!” Said no government ever.

But that tension is why Bitcoin exists. It’s the check on overreach. It’s the lifeboat if they push too far. It’s the parallel economy waiting in the wings for the moment centralized digital currency becomes a cage instead of a convenience.

Furthermore

Bitcoin should absolutely be usable as currency — without capital gains friction — and Davidson’s bill moves us toward that reality.
At the same time, we shouldn’t dismiss the concern that governments will regulate Bitcoin into institutional custody (BlackRock, Fidelity, Chase, etc.). That’s a real risk.

But none of that changes the truth:

Self-custodied Bitcoin is outside the cage.

That’s your sovereignty. That’s your freedom.
That’s the whole point.

And when the day comes — and trust me, it will — when a digital dollar or digital euro starts blocking transactions, enforcing political compliance, or monitoring how you spend your money… you’ll be glad there’s a peer-to-peer electronic cash system running underneath it all.

For now, enjoy the emergence of Satoshi’s vision.
Use Bitcoin how you want.
Hold it how you want.
Spend it how you want.

And keep the keys in your own hands.

Happy HODLing - Matt