|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The incoming U.S. president has even signalled potentially creating a strategic reserve of bitcoin.
Donald Trump's path to the White House has been marked by a focus on cryptocurrency, driving the price of bitcoin to record highs and sparking heated debate.
The incoming U.S. president has even hinted at the possibility of creating a strategic reserve of bitcoin.
At the New York Stock Exchange this week, CNBC host Jim Cramer asked Trump whether he would proceed with such a plan.
"Yeah. I think so. We're going to do something great with crypto," he replied.
Since Trump won the U.S. election, bitcoin has climbed above $100,000 US for the first time. Now, he's filling his administration with pro-crypto advisers, and seems to be backing the idea of a bitcoin reserve held by the U.S. Treasury, which analysts say could boost the price by another 50 per cent. Supporters say he could put the U.S. at the forefront of a technology that they view as revelatory — while critics say it'll further entrench wealth inequality.
Trump's turn toward crypto
Trump is a recent convert on the issue of cryptocurrencies, once calling bitcoin a "scam" against the U.S. dollar. But during the campaign, he heralded himself as "the first major party nominee in American history to accept donations in bitcoin and crypto."
It's unclear what prompted his change of heart. But he and his family did launch their own cryptocurrency during the recent campaign.
And he said, that was just the beginning.
"I'm laying out my plan to ensure that the United States will be the crypto capital of the planet and the bitcoin superpower of the world," he told a bitcoin conference in November.
He's also appointed billionaire David Sacks to be his new "AI and crypto czar."
Sacks was part of the so-called PayPal Mafia, a group of founders and employees (including fellow Trump appointee Elon Musk) who built the financial technology firm in the early 2000s, and have since founded or played major roles in other tech companies.
He's been a vocal proponent of bitcoin and cryptocurrency dating back to as early as 2013.
"Bitcoin has the potential to be the next internet — the internet of money. I'm buying," he posted on X on May 30, 2013, when Bitcoin was trading for a mere $129. If he invested $1,000 then, it would be worth nearly $800,000 today.
Now, Sacks has a key job within the next administration, shaping how the industry will be regulated. In July, he posted on X that the industry's main desire was a clear legal framework.
"If Trump wins, the industry will get this, and more innovation will happen in the U.S."
Reserve not a new idea
The idea of a strategic reserve was gaining steam even before Trump won the election.
A bill proposed this summer by Republican Senator Cynthia Lummis of Wyoming, a Trump ally, would require all bitcoin held by any federal agency be transferred to the Treasury to be held in a strategic bitcoin reserve.
It would also mandate the Treasury secretary to purchase no more than 200,000 bitcoins a year over a five-year period, for a total of one million bitcoins.
The U.S. Treasury would be required to hold onto those bitcoins for at least 20 years.
Crypto enthusiasts say the reserve would position the United States as a world leader in the world of cryptocurrency, which they view as the future of the financial system. They also say Bitcoin will soar to all new heights if the new administration backs the idea of a strategic reserve.
"I think it's headed for a range of $250,000 [US] to $500,000 [US per coin]," said analyst Ronnie Moas, founder of Standpoint Research.
Moas says the Trump presidency has put new wind in the sails of crypto, and the moment a bitcoin reserve is announced, the price will spike again.
"[It] will move the price overnight by between 25 and 50 per cent because you'll have a flood of people coming in trying to jump in front of the government's purchase, which is going to take months or weeks to get off the ground," Moas said this week.
Moas is no fan of Trump, calling him an "idiot" and a "scam artist," but he says he is right on bitcoin.
Others are just as adamant that a bitcoin reserve fund is a fundamentally bad idea.
Among the naysayers is Larry Summers, an economist and former U.S. Treasury secretary.
Summers says there may well have been a decent argument in favour of creating a strategic petroleum reserve or to build up hordes of gold at Fort Knox a century ago
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
-
- 6 Best Crypto ICOs With 1000x Return Potential
- Feb 01, 2025 at 09:30 pm
- This year has all the potential to be remembered as a historic one for crypto. Many established coins such as Bitcoin and Solana, reached new all-time highs in this cycle and with all prices now consolidating, investors are waiting carefully for the future market rally.
-
- Solana, Avalanche, and Hedera: The Top Altcoins Leading the Next Market Surge?
- Feb 01, 2025 at 09:30 pm
- Solana is smashing records, with its ecosystem hitting new all-time highs in DeFi activity. Four major firms—VanEck, 21Shares, Bitwise, and Canary Capital—have filed for a spot Solana ETF, a move that could bring massive institutional inflows to the network.