Meet Congressman Nicholas Begich: The Original Bitcoin Pioneer!
Introducing Congressman Nicholas Begich, A Veteran Bitcoiner
Last week on Tuesday, Congressman Nick Begich (R-AK) brought forth The BITCOIN Act of 2025 to the U.S. House of Representatives. He disclosed this initiative during the Bitcoin For America summit.
This proposed legislation, a modified form of a bill introduced by Senator Cynthia Lummis (R-WY) in the previous year, mandates that the U.S. government obtain 1 million bitcoins for its Strategic Bitcoin Reserve. Additionally, it safeguards the right of American citizens to maintain self-custody of their bitcoin holdings.
When Congressman Begich passionately addressed the significance of the bill at the summit, it became evident to me that he was not merely seizing a moment of political opportunity amid Bitcoin’s rising prominence within the U.S. government; rather, he genuinely comprehends the nuances of Bitcoin.
Further investigation revealed that the Congressman has actively managed his own bitcoin as a self-custodian for over a dozen years, showcasing his profound understanding of the necessity for citizens to retain lawful ownership of their bitcoin assets. Moreover, he advocates for the acquisition of bitcoin by the U.S. government, viewing it as essential to fortifying the nation’s financial framework amidst what he describes as a time of “unrestrained bureaucracy” and indiscriminate financial spending.
When did your appreciation for Bitcoin first develop on a personal level?
It all began in late 2012 when I stumbled upon an article on Slashdot.org discussing Bitcoin and the upcoming halving event. This sparked my curiosity. I delved deeper into the mechanics of this digital currency and ended up wiring $100 to Mt. Gox to purchase seven bitcoins. After that, I transferred them to a private wallet, eager to understand how Bitcoin functioned, especially given my background in software development and over two decades of experience in technology before entering Congress. It genuinely intrigued me.
So, your interest was primarily driven by curiosity?
Absolutely. However, a few days later, I excitedly informed my business partners about my conviction that Bitcoin had the potential to become something significant, even though they had never heard of it. I decided to invest $5,000 in Bitcoin, sourcing that capital from our software enterprise to acquire even more on Mt. Gox. Ultimately, this led us to accumulate 440 bitcoins. When the exchange collapsed, it was catastrophic since all of our assets were trapped there. Fortunately, several creditors banded together to hire a lawyer in Japan, and we were one of the claimants who successfully petitioned the courts. Eventually, Japan shifted the bankruptcy proceedings from liquidation to civil rehabilitation, allowing creditors to reclaim some of their bitcoin.
Were you able to recover any of those bitcoins in the end?
I ultimately chose to sell our company’s claim to Fortress but still retain my original seven bitcoins.
What motivated you to present The BITCOIN Act in the House last week?
For a long time, I’ve believed in the necessity for the United States to establish a Strategic Bitcoin Reserve. I advocate for this because the majority of reserve assets available today can be generated at will by a centralized authority. In contrast to gold, Bitcoin symbolizes value derived from scarcity, making such assets prime candidates for inclusion in a reserve as they provide a safeguard against ungoverned bureaucracies. Over the past several years, and indeed decades, we’ve witnessed the federal government print dollars to address issues, only to create new, more significant problems. Thus, the continued possession of gold and the prospective addition of bitcoin is crucial since both represent a financial buffer comprising limited resources that isn’t subject to governmental whims or congressional directives, thereby imposing a level of discipline on our financial framework. Congress has consistently struggled to maintain strict financial discipline and adhere to the confines of its constitutional mandate. This pattern implies that the current trajectory is untenable. The United States cannot uphold a debt-to-GDP ratio of 125%. Sustained deficit spending, as experienced over recent decades, cannot persist. Our gold and forthcoming bitcoin reserves will act as a safety net for the American populace if the fiat debt system collapses.
What do you think the chances are that The BITCOIN Act will be enacted into law?
The prospects are improving. I attribute this to a few key factors: a) an increasing number of Congress members are familiar with Bitcoin; b) more legislators recognize the precarious nature of our existing debt and deficit; and c) there’s a rising public awareness regarding the wisdom of diversifying our national strategic reserves with a scarce asset alongside gold. These three aspects suggest that the timing is auspicious. The growing list of cosponsors from both the Senate and House is quite encouraging, and I’m aware of significant interest from others in Congress who seek to learn more about the legislation and its potential role as a safeguard for the United States.
The bill proposes that the government acquires 1 million bitcoins—5% of the total supply—within five years. What is the rationale behind this five-year timeline and the acquisition of 1 million bitcoins?
When analyzing the amount of gold central banks hold in reserve compared to its total supply, it’s estimated at roughly 5% to 15%. Hence, aiming for that 5% to 15% range within a global centralized bank makes logical sense for reserve assets. As for the five-year plan, it’s vital to avoid causing a demand shock that could lead to short- to mid-term volatility. Importantly, the U.S. government isn’t meant to operate as a day trader; it must adopt a methodical, wise, and predictable approach to acquiring assets. Thus, a five-year timeframe is much more logical than a one-year or eighteen-month approach.
The bill also calls for the establishment of a proof of reserves system. Could this resemble El Salvador’s model, wherein the government’s Bitcoin address is publicly available?
Absolutely. One of the issues we’ve faced with Fort Knox is that public auditing of reserves is impossible, leading to skepticism about whether the government possesses the gold it claims. With Bitcoin, we can leverage mechanisms that enable continuous proof of reserves, ensuring every citizen can confidently verify that the government holds the bitcoins it asserts.
What vision do you have for the cold storage setup in the United States?
The legislation specifies that regulations and technical guidelines will be developed in consultation with experts in the industry, which I find appropriate. However, based on my own Bitcoin experiences, it’s crucial that a) we prioritize cold storage, and b) we utilize numerous separate cold storage wallets. Equally important is the distribution of the keys for these wallets across various physical locations, employing the Shamir backup system. This method allows for reassembly of keys as long as two of three pieces are present, ensuring that no complete key resides in one location—an arrangement that would leave it vulnerable to compromise. A diversified key strategy requiring pulls from multiple locations for each wallet is, in my opinion, the safest cold storage solution available.
The legislation also defends the right of U.S. citizens to self-custody their bitcoin. Why do you think self-custody is crucial?
Self-custody is vital since historical precedents, like the U.S. government’s actions regarding gold in the early 20th century under Executive Order 6102, reveal how assets can be nationalized. At that time, private ownership of gold was restricted to jewelry, effectively seizing the public’s wealth. Such actions should never repeat in the U.S., regardless of the asset type. Reinforcing the legal assurance for individuals to self-regulate their wealth is a crucial reaffirmation of our constitutional rights.
Are you aware of the Samourai Wallet and Tornado Cash cases, where developers might face prosecution for creating and maintaining Bitcoin and cryptocurrency mixers?
I’m not familiar with those particular cases. While I know what mixers are, I don’t have information on Samourai Wallet. Mixers have existed for a considerable time.
Indeed, they have. What are your opinions on this matter?
The essential question is: “Where do we draw the line between the base layer and subsequent layers?” Bitcoin’s unique qualities as a store of value set it apart from other cryptocurrencies. While platforms like Ethereum allow for various transactional stipulations, incorporating restrictions at the base layer of a store of value currency like Bitcoin would enable centralized control, undermining its fungibility.
Do you have any final remarks to share?
I am genuinely enthusiastic about this legislation. It holds immense significance for our nation. I hope to see the Bitcoin community actively engage with their Congressional representatives to bolster support for this initiative. While Senator Lummis and I represent key voices in this endeavor, we need the Bitcoin community to continue enlightening and influencing Congress members so we can progress this bill to President Trump’s desk for his signature.
This article Introducing Congressman Nicholas Begich, A Veteran Bitcoiner originally appeared on Bitcoin Magazine, authored by Frank Corva.
The post Meet Congressman Nicholas Begich: The Original Bitcoin Pioneer! appeared first on Crypto Breaking News.
Filed under: News - @ March 18, 2025 1:26 pm