Bitcoin and the 90th Anniversary of Executive Order 6102
As Bitcoin continues to gain traction as a decentralized, authority-free, censorship-resistant alternative asset, we have once again reached the anniversary of an event that reminds us why BTC matters.
90 years ago today, US President Franklin D. Roosevelt signed Executive Order 6102, banning the ownership of gold in the US. Here’s everything you need to know about the historic event and why the same can’t happen to Bitcoin.
What is Executive Order 6102?
Executive Order 6102 was signed by US President Franklin D. Roosevelt on April 5, 1933, prohibiting the hoarding of gold coins, gold bars, and gold certificates in the United States.
The order required individuals and companies to immediately sell their gold to the Federal Reserve at the then prevailing market price of $20.67 per ounce. Today, gold is worth over $2,000 per ounce. The order also made it illegal to export gold without a license issued by the Ministry of Finance.
The purpose of the executive order was to protect the American economy during the Great Depression. At the time, the United States was on the gold standard, which meant that the value of the US dollar was tied to the value of gold. However, the government needed to increase the money supply to stimulate the economy, and it could not do so while the majority of the country’s gold was being hoarded.
Gold from Executive Order 6102 forward | XAUUSD on TradingView.com
Bitcoin and become digital gold
The parallels between gold then and Bitcoin today are striking. Bitcoin, like gold, is seen by many as a store of value and a hedge against inflation. Both assets have a limited supply and cannot be easily manipulated by governments or central banks. Bitcoin’s decentralized nature means it is not subject to the same types of government intervention that gold faced in the 1930s.
However, just like gold, Bitcoin has faced regulatory challenges. Some countries have banned or restricted the use of cryptocurrencies, and governments have cracked down on cryptocurrency exchanges and other businesses that trade in digital assets. The recent “Operation Chokepoint” is a perfect example of the government trying to stop BTC, and ultimately failing – it has only gotten stronger since the attack began.
Despite these challenges, Bitcoin has continued to grow in popularity and value. In 2021, the cryptocurrency reached an all-time high of nearly $65,000 per coin due to a growing “digital gold” and inflation hedging history. Today, it trades at roughly $28,000 per BTC, but has remained resilient in some of the toughest macroeconomic conditions since its inception, and has recently strengthened amid a growing crisis in the banking sector.
BTC throughout history | BTCUSD on TradingView.com
Why governments can’t ban BTC and will lose if they try
The US government may try to issue another Executive Order against Bitcoin, but because it has no psychic form, and includes a layer of at least some anonymity, the government will have a very difficult time enforcing the order. In addition, the order was due to the fact that the dollar was pegged to gold at the time. No such relationship between BTC or the US economy currently exists, meaning the same motives are not driving such a decision.
It’s not like the US government or any other government couldn’t take a dramatic stand against BTC, but it would have limited effect unless the whole world did the same. And in today’s environment, an opportunity to reduce the dominance of the dollar is an opportunity other countries would immediately take. Thus, such an order could put the United States at a significant disadvantage.
Shockingly, similar events have taken place across the financial sector that are eerily similar to the conditions that led to the Great Depression, including bank runs and the role played by gold and BTC. Cycles can repeat themselves every 90 years, making the 90th anniversary of these key moments in history particularly noteworthy. Back then, individuals and businesses began hoarding gold. If such a situation occurs with BTC, given its scarce supply and ability to bubble up in price, something incredible could be on the horizon for the top cryptocurrency designed specifically to be unaffected by orders like this.
Today marks the 90th anniversary of Executive Order 6102, signed by President Franklin D. Roosevelt, which required American citizens to surrender their gold to the government. #goldconfiscation #history
Continue reading the thread 🧵 for more facts and why this cannot happen #Bitcoin pic.twitter.com/k7uagl5QGg
— CoinChartist (@coinchartist_io) 5 April 2023
