Pinching Pennies and Making Change
- Brainz Magazine
- Nov 20
- 7 min read
Updated: Nov 21
Written by David Spencer, CPA, Crypto Specialist
David Spencer CPA is a specialist in digital asset accounting and taxation. He has written, spoken, and advised in the digital asset space since 2016.
Now is the time to hang on tight to the change jar. Soon, the pennies in it might be a collector's item. Yes, it is true. The United States minted its last penny on November 12th, 2025, following an order from the president to discontinue production due to high manufacturing costs. The cost of producing a one-cent coin was nearly 4 cents. The decision to stop production will save us an estimated $56 million annually. True, a little more than a change in the couch compared to the massive federal budget. So those are just facts.
However, there is a much more interesting point to consider when we think about the penny going away. The fact of the matter is that money, as we know, has changed forever. There will be a pre-Penny era and a post-Penny era. Sellers will adjust prices accordingly, but with most Americans using digital payment methods, not much will change there. Is this the beginning of the disappearance of cash?
Not likely, while it is very difficult to measure, cash still has a firm place in our economy. While declining in use surely, the ATM Industry Association, ATMIA, estimates over half a million ATMs in the country, and use is largest amongst younger users, with use declining in older generations. Cash will always have a place. The value of that cash is a topic of further debate, however. But I digress, back to the penny.
Of course, that doesn't seem like much of a change to talk about. Okay, the penny goes away. What is the big deal?
More importantly, the fact is that money does change. Over time, we have been living in a world for several generations, where we have been under the influence of the U.S. dollar. We are under the belief that “it has always been this way”. The money in the pocket of the average American has undergone few noticeable changes to the layman. They have surely noticed the cosmetic changes and the hard fact that it does not buy the same amount as it did long ago. Or often even as much as it did last month. But as far as most are concerned, it is backed by the full faith and credit of the United States, and that is good enough to put them at ease.
Most people have not thought too much about the dollars in their pockets as long as they keep spending. As long as they are able to go to work, earn a living, use those dollars to raise a family, and enjoy the occasional recreation. The technicalities of how the money in their pocket operates in the big world we live in haven't been on the radar of the average American. That has been rapidly changing as the noticeable changes begin to become more and more painful, and other forms of money present themselves, outpacing the dollar.
However, that is changing. Digital currencies, international currencies, and more Americans are traveling the world. The news highlights the issues that have grown over decades and ascribes them to the current President Trump. The average American is becoming aware of the fact that the United States' debt is a real problem to consider. We've had several debt shutdowns of the United States government, and we may have a debt ceiling fight coming up next year.
The debt ceiling is currently $41.1 trillion and was enacted on July 4th, 2025, by the budget reconciliation Act, with compounding. The United States has been running roughly a trillion dollars annually just in interest payments. Thus, the current debt is 38.2 trillion, with a debt limit of 41.1 trillion. It appears to give the government approximately 8 or 9 quarters of continued operation before the debt limit ceiling is raised again. You can see below that the interest payments on the government debt have skyrocketed.
Average Americans aren’t the only ones who are pinching pennies in this economy. The Government and its creditors are looking at the books of the U.S. government with increased skepticism. They are metaphorically looking through the couch cushions to see what they can find. Enter the U.S. Strategic Bitcoin reserve.
The United States currently holds approximately 198,000 Bitcoin, as of August 2025. On March 3rd, 2025, the president. Trump announced that the reserve would include Solana Cardano, Ripple, and Ethereum, in addition to bitcoin. We see the United States of America recognizing another form of currency other than the U.S. dollar. Does this have international value? Who decides that? What is happening to the money?
The money that we use has not always been the same. People often say, “It's always been this way.” But the fact of the matter is that it has not. Money is a thing that changes over time and reflects the changing culture of any particular place and time.
For example, the continental currency that financed the losing side of the Civil War had some unique characteristics and flaws. I will simply leave this here.
Characteristics:
The notes were intended to unify the colonies' effort against Britain.
Initially issued as emergency currency, they lacked intrinsic backing and were not redeemable in specie (gold or silver).
Printed in large quantities with patriotic symbols and slogans.
Problems:
Rapid over-issuance led to a loss of confidence.
Inflation soared, and by the end of the war, Continental currency was virtually worthless.
The phrase “not worth a Continental” originated from the currency’s rapid depreciation.
We can look back to early colonial money, the Stamp Act, the First Bank of North America, the First Central Bank of the United States, the Second Central Bank of the United States, and then the Federal Reserve, enacted in 1913 after a dubious meeting of Bankers on Jekyll Island, Georgia. A great book on the topic is “The Creature from Jekyll Island”, by G. Edward Griffin. Money has changed a great deal in our country’s history, and it will continue to change.
In 1913, money was originally backed by the Full Faith and Credit of the United States government with gold and silver. We had silver certificates before they were enacted by John F. Kennedy. We had a revaluation of silver and gold in 1933, after the banking debacle. After the Great Depression, money had a very different connotation for generations of 2 individuals who experienced what we now call the Great Depression. The images from that time are startling. We saw the Dust Bowl. We see people who look malnourished and starved to the bone.
However, there is not a major city in the United States of America in which we will not find a large population of people who remind us of the faces etched in our minds from the images of the Great Depression.
We are living through a silent depression as we speak. The question is in this tumultuous monetary time. Is our government taking action? And are they taking action bigger than a penny? The answer to those questions is yes and emphatically.
We are at the beginning of a change in the monetary system. Reminiscent of that which occurred after World War II. Hopefully, we will avoid the dangers of global war during this monetary reset.
The monetary reset that is coming will be the most complex in history, and, dear reader, I do not claim to have the mechanics of this reset worked out. However, we are in good hands here in the United States. As our president has had numerous bankruptcies under his belt and sadly, he may be one of the most qualified business individuals on the planet to handle the bankruptcy of the most powerful economy on the planet.
To be sure, the countries of the world are well aware that the debt of the United States will not be repaid by any traditional means. And this in turn makes them very nervous. We see the writing on the wall with BRICS. With new monetary systems, new financial systems, and new payment rails popping up around the world.
The reserves of the dollar have been dwindling internationally. Countries all over the world are using alternative payment methods. Trade between Russia and China is all but done exclusively in non-dollar terms. The massive stockpile of dollars that China had accumulated, at one point well over a trillion dollars of treasuries, has been spent on infrastructure projects, building goodwill and capital all over the world.
Gold has now reached above 4,000 dollars an ounce, a spectacular all-time high. Silver has reached over $50 per ounce. An amount unfathomable just a few years ago and not seen in over a decade. What a time to be alive.
To conclude. Yes, we should be pinching our pennies as we approach what will be the most technically complex, monetary reset in history. The United States will use digital assets and the revaluation of gold to pay down a large portion of its debts. It will be a thing to watch as the business and financial world around us changes. But as the saying goes.
Change is the only constant. Money is always changing. Some changes are more visible than others. The penny is gone, but what comes next remains to be seen.
For further information, please reach out to David Spencer at FinnovateCPA or contact me at +1-813-812-1950.
Read more from David Spencer
David Spencer, CPA, Crypto Specialist
David Spencer is a licensed CPA in the state of Florida and has been serving clients in the accounting and tax space since 2014. In 2016, he first learned about digital assets, which began his consistent service to the digital asset and emerging technology community. In addition to his degrees in accounting and finance, Mr. Spencer holds numerous certifications from organizations such as Harvard, IBM, and the Global Blockchain Business Council. This is what secures him in the overlap of Finance, Technology, and accounting in business. He has spoken and been published in periodicals such as the Florida Bankers Association and others.
