Originally published on: December 04, 2024
The United States government is considering the possibility of adding Bitcoin, the leading cryptocurrency, to its national reserve. This once far-fetched idea is now gaining momentum, particularly with the pro-crypto stance of Donald Trump, who is expected to return to the White House.
The notion of a strategic Bitcoin reserve is being taken seriously and has the potential to reshape the US economy and the global financial landscape. National reserves typically consist of assets like gold, foreign currencies, and commodities such as oil, serving as a financial safety net for nations.
Advocates of Bitcoin argue that its decentralized nature and limited supply make it a strong hedge against inflation, akin to gold. The US government already holds a significant amount of BTC, seized during criminal investigations. However, lawmakers like Senator Cynthia Lummis are pushing for more.
Senator Lummis has introduced the Bitcoin Act, which proposes that the US acquire up to 1 million BTC over five years by reallocating existing federal assets. States like Pennsylvania are also exploring Bitcoin investments, potentially paving the way for federal action.
While there are critics who raise concerns about Bitcoin’s volatility and the implications of government involvement in a decentralized asset, experts believe that establishing a US Bitcoin reserve could drive the price of the cryptocurrency to unprecedented levels. Some estimates even project the price of Bitcoin reaching $500,000 or $1 million per coin.
If you’re intrigued by this idea, be sure to watch Cointelegraph’s latest YouTube video, which delves into this bold proposal, analyzes its potential impact, and discusses whether Bitcoin could play a role in addressing the US national debt. And don’t forget to subscribe to Cointelegraph’s YouTube channel for more insightful content!
