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Cryptocurrency News Articles
MicroStrategy's Michael Saylor Proposes US Establish a Strategic Bitcoin Reserve
Dec 23, 2024 at 11:23 am
Saylor thinks the Bitcoin reserve strategy could potentially create $81 trillion in wealth for the US Treasury.
MicroStrategy co-founder and Chairman Michael Saylor has proposed that the US establish a strategic Bitcoin reserve, a move he claims could generate $81 trillion in wealth for the U.S. Treasury.
Saylor, a known proponent of Bitcoin, outlined his proposal in a recent tweet, arguing that the Bitcoin reserve strategy could "secure America's position as the leader in the global digital economy."
"A strategic digital asset policy can strengthen the US dollar, neutralize the national debt, and position America as the global leader in the 21st-century digital economy—empowering millions of businesses, driving growth, and creating trillions in value," Saylor wrote.
According to Saylor, BTC has become "the most valuable, scarce good on Earth" due to its increasing global adoption. He predicts that the global digital capital market will expand from $2 trillion to $280 trillion, presenting a significant opportunity for US investors to capture a large portion of this wealth.
Saylor's proposal, if implemented, could see the US government purchasing and holding a substantial amount of Bitcoin. This move, he argues, would generate anything between $16 trillion to $81 trillion for the U.S. Treasury.
Pushing BTC to $500,000
The MicroStrategy Chairman believes that a Bitcoin reserve, combined with the reserve status of the U.S. dollar, would propel BTC to $500,000. This price point, according to Saylor, would present a "once-in-a-generation opportunity for retail and institutional investors."
"If you think Bitcoin to $500,000 is too good to be true, then you don't understand the power of a Bitcoin standard and the US dollar world reserve status, combined with the largest, most liquid capital markets in the world," Saylor added.
However, Saylor's proposal has faced strong criticism from some quarters, including economist and Bitcoin critic Peter Schiff. In an X post, Schiff argued that the opposite of Saylor's claims would be true.
"It would weaken the dollar, exacerbate the national debt, and make America a laughing stock. It would deprive businesses of power, diminish growth, and destroy value," Schiff wrote.
Several US states, including Ohio, Texas, and Pennsylvania, have also proposed incorporating Bitcoin into their economies.
In a recent CNF update, US President-elect Donald Trump proposed creating a strategic Bitcoin reserve, while several US states are also exploring the possibility of incorporating the coin into their state economies.
Ohio Representative Derek Merrin has proposed a bill to create a state-managed Bitcoin fund in Ohio. The proposed bill, titled the Ohio Bitcoin Reserve Act, aims to offset inflation and diversify the state's financial portfolio.
Meanwhile, both Texas and Pennsylvania are pushing for a government-sponsored Bitcoin reserve. In the case of Texas, the state would be permitted to hold Bitcoin that is obtained through taxes, fees, and donations for extended periods of time, to the "benefit of present and future generations of Texans."
Furthermore, Pennsylvania's proposal includes a provision that would allow the state to cushion against economic unpredictability by investing anything up to 10% of its $7 billion Treasury funds in Bitcoin.
The rising interest in a Bitcoin strategic national reserve comes on the heels of the coin's rise to over $100,000. However, BTC price has since dropped in value and trades at $98,226, up 3% in 24 hours at the time of writing.
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