Bitcoin & The 90th Anniversary of Executive Order 6102
As Bitcoin continues to gain traction as a decentralized, authority-free, censorship-resistant alternative asset, we once again reach the anniversary of an event that reminds us why BTC matters.
90 years ago, US President Franklin D. Roosevelt signed Executive Order 6102, banning the ownership of gold in the United States. Here’s everything you need to know about the historic event and why the same cannot 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 bullion, and gold certificates in the United States.
The order required individuals and companies to immediately sell their gold to the Federal Reserve at the market price of $20.67 per ounce. Today, gold is worth more than $2,000 an ounce. The order also made it illegal to export gold without a license issued by the Treasury Department.
The purpose of the executive order was to protect the US economy during the Great Depression. At the time, the US was on the gold standard, which meant that the value of the US dollar was linked 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 most of the country’s gold was being hoarded.
Gold from Executive Order 6102 forward | XAUUSD on TradingView.com
Bitcoin and becoming 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 are in finite supply and cannot be easily manipulated by governments or central banks. Bitcoin’s decentralized nature means that 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 companies 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 grown stronger since the attack began.
Despite these challenges, Bitcoin has continued to grow in popularity and value. In 2021, the cryptocurrency hit an all-time high of nearly $65,000 per coin due to a growing “digital gold” and inflation hedging narrative. Today it is trading at around $28,000 per BTC, but it has remained resilient in some of the toughest macroeconomic conditions since its inception and has recently strengthened amid a growing banking sector crisis.
BTC throughout history | BTCUSD on TradingView.com
Why governments can’t ban BTC and will lose if they try
The US government could try to issue another Executive Order against Bitcoin, but since it has no psychic form and includes a layer of at least some anonymity, the government would have a very difficult time enforcing the order. Furthermore, the order was due to the fact that the dollar was pegged to gold at the time. Currently, there is no such relationship between BTC or the US economy, which means that the same reasons are not driving such a decision to be made.
This is not to say that the US government or another government could not take a dramatic stand against BTC, but it would have limited effect unless the entire world did the same. And in today’s environment, an opportunity to ease the dollar’s dominance is an opportunity that other countries would instantly seize. Thus, such an order could put the United States at a considerable disadvantage.
Surprisingly, similar events are taking place in finance 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 occur again every 90 years, making the 90th anniversary of these key moments in history especially notable. At that time, individuals and companies began to accumulate gold. If such a situation arises with BTC, given its tight supply and ability to soar in price, something amazing could be on the horizon for the top cryptocurrency, specifically designed not to be affected by orders like this one.
Today marks the 90th anniversary of Executive Order 6102, signed by President Franklin D. Roosevelt, which required US citizens to turn over their gold to the government. #gold confiscation #history
Keep reading the thread 🧵 for more facts and why this can’t happen to #Bitcoin pic.twitter.com/k7uagl5QGg
— CoinChartist (@coinchartist_io) April 5, 2023