U.S. Tariffs Could Be Used to Buy Bitcoin, Predicts Fred Krueger

A bold prediction by entrepreneur Fred Krueger is stirring debate in crypto circles. He believes the United States could one day use tariff revenue to buy Bitcoin, a move that could completely reshape global markets.

Tariffs as a Bitcoin War Chest

U.S. Commerce Chief Howard Lutnick recently said tariffs could generate as much as $50 billion per month. Krueger argues that if even part of this money flowed into Bitcoin, the scale would be historic.

“At current prices, $50 billion equals nearly 400,000 BTC in just one month—far beyond the roughly 19,000 coins mined daily,” Krueger noted. 

Such large-scale buying could send Bitcoin prices soaring. Krueger believes this kind of demand would change Bitcoin’s behavior forever.

“This wouldn’t follow normal supply-and-demand models,” he said. “It could break the power law of Bitcoin and push it into a new phase as a true macroeconomic asset.”

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U.S. Strategic Bitcoin Reserve

The idea isn’t completely new. Earlier this year, the U.S. created a strategic Bitcoin reserve using confiscated coins. Treasury Secretary Scott Bessent has given mixed signals about future purchases, but recently left the door open for “budget-neutral ways to add more Bitcoin.”

That’s why Krueger suggests tariff revenue, which doesn’t directly impact taxpayers, could be the perfect funding source.

Is It Realistic?

Critics say the plan is unlikely, warning it could create political backlash and financial instability. Still, the very fact that this idea is being discussed shows how far Bitcoin has come.

Whether or not the U.S. takes Krueger’s advice, the speculation highlights Bitcoin’s shift from a fringe asset to a serious policy discussion.