Governments Race to Accumulate Bitcoin, Triggering the Path to $1 Million BTC

As nations worldwide recognize Bitcoin's potential as a strategic reserve asset, an international race to accumulate BTC is unfolding.

As nations around the world recognize Bitcoin’s potential as a strategic reserve asset, an international race to accumulate BTC is unfolding. Governments are exploring the possibility of setting up Bitcoin reserves as a hedge against inflation and a long-term store of value. Some analysts believe that this large-scale BTC acquisition could propel the cryptocurrency's price to $1 million.

United States: Leading the Charge with Bitcoin Reserves

In the United States, the movement to include Bitcoin in state treasury reserves is gaining momentum. Currently, 20 states are actively pursuing legislation to allocate a portion of their reserves to BTC.

Utah Could Be the First to Establish a Bitcoin Reserve

The state of Utah is leading the way and could soon become the first to establish a Bitcoin reserve. Lawmakers have advanced a bill that would allocate up to $100 million in BTC from the state's Permanent Community Impact Fund to be held in a cold storage wallet. If passed, this initiative would mark a significant step in the integration of Bitcoin into government reserves.

U.S. Government Already Holds Bitcoin via Seizures

Interestingly, the U.S. government already holds a substantial amount of Bitcoin, albeit indirectly. Through various law enforcement actions, the government has seized and forfeited millions of dollars in BTC over the years. These holdings are managed by the U.S. Marshals Service.

Brazil & Other Nations Propose Bitcoin Strategic Reserves

The movement to accumulate Bitcoin at a national level is not limited to the U.S. Several other countries have proposed setting up strategic BTC reserves.

Brazil's Congress Is Reviewing a Bitcoin Reserve Proposal

In Brazil, a bill that would allocate up to 1% of the country's National Treasury to Bitcoin is currently being considered by Congress. If passed, this measure would significantly bolster Brazil's BTC holdings and further integrate the cryptocurrency into the nation's financial system.

Other Countries Considering Bitcoin Reserves

Other countries that have expressed interest in setting up Bitcoin reserves include Argentina, Paraguay, and Nigeria. As these nations grapple with soaring inflation and seek to diversify their foreign exchange reserves, BTC is emerging as a compelling option.

El Salvador: The First Nation to Officially Buy Bitcoin

El Salvador made headlines in 2021 when it became the first country to adopt Bitcoin as legal tender. As part of this initiative, the government has continued to purchase and hold BTC.

Recently, El Salvador added 5 more Bitcoin to its national reserves, bringing the total to 2,381 BTC. This move further demonstrates the country's long-term commitment to accumulating Bitcoin.

El Salvador has also launched Bitcoin-backed bonds and various infrastructure projects that integrate BTC into its financial system. Despite initial setbacks, El Salvador's experiment in making Bitcoin a central part of its economy is still unfolding.

Why This Matters

El Salvador's experiment in holding Bitcoin as a national asset is setting a precedent for other countries to follow. According to Bitcoin advocate Michael Saylor, the first nation to print their own currency to buy Bitcoin will gain a massive advantage.

“The first nation to print their own currency to buy #Bitcoin wins.”

We are going so much higher â ¤ï¸

Q157cxz5Iv pic.twitter.com/Q157cxz5Iv

— Michael Saylor 🤵 (@saylor) March 10, 2023

Saylor compares this strategy to MicroStrategy’s success. He explains that his company purchased Bitcoin "at the lowest price possible" by printing money to buy BTC, a move that generated a return of 120x over four years.

According to Saylor, printing money isn't inflationary if it's used to buy appreciating assets like Bitcoin. Instead, it's a strategic move that could lead to massive economic growth.

The Path to $1 Million Bitcoin – Is It Possible?

As governments and institutions continue to accumulate Bitcoin, some analysts believe that BTC's finite supply of 21 million coins will create a massive supply shock. According to this theory, the high demand and limited availability will drive Bitcoin's price to astronomical levels.

Some analysts believe that a $1 million BTC price is possible if global adoption continues. If institutions like BlackRock and Vanguard begin offering Bitcoin to their clients, and countries like China and India join the BTC bandwagon, a $1M price could be on the horizon.

As governments race to stockpile Bitcoin, the question isn't if the cryptocurrency will become a global reserve asset—it's who will get there first.