The US government could make transacting with, or trading in, Bitcoin anywhere in the world illegal for US citizens and then offer $75,000/coin domestic redemption exclusively for those citizens. Offering a premium like this is exactly what the US did with Gold in 1934.
To prevent inflows from outside of its borders it could simply require that anyone redeeming prove that they are 1) a US citizen, 2) purchased the coins prior to a certain date and 3) did so with their own capital/earnings.
Sure the Fed would have to print a lot of dollars, but the Gov could then sell any coins it reaped in foreign markets, crashing the price overseas and only losing the premium they paid. The crashing price would drive further domestic redemption.
The market cap may be $1T but the trading volumes are tiny ($80bn/day peak), so the US could easily take it down with a concerted effort, particularly if other major nations (like the EU) were also in the game.
You're naive if you think the US and the EU simultaneously banning Bitcoin (and other decentralized cryptocurrency) wouldn't render it an interesting historical footnote. It's a speculative asset that doesn't have enough real world utility for anyone to go to war over.
To prevent inflows from outside of its borders it could simply require that anyone redeeming prove that they are 1) a US citizen, 2) purchased the coins prior to a certain date and 3) did so with their own capital/earnings.
Sure the Fed would have to print a lot of dollars, but the Gov could then sell any coins it reaped in foreign markets, crashing the price overseas and only losing the premium they paid. The crashing price would drive further domestic redemption.
The market cap may be $1T but the trading volumes are tiny ($80bn/day peak), so the US could easily take it down with a concerted effort, particularly if other major nations (like the EU) were also in the game.
You're naive if you think the US and the EU simultaneously banning Bitcoin (and other decentralized cryptocurrency) wouldn't render it an interesting historical footnote. It's a speculative asset that doesn't have enough real world utility for anyone to go to war over.