- Donald Trump continues to push for a US Bitcoin Reserve
- He compares the reserve to oil, gold, and silver
- And he also suggests that the value of Bitcoin could exceed them
- Cynthia Lummis’ Bitcoin US Treasury bill has been put forward to Congress
We are witnessing a historic consolidation around the adoption of Bitcoin from various quarters.
Trump continues to advocate for creating a U.S. Bitcoin reserve and offers highly optimistic forecasts, while Senator Lummis has already introduced a Bitcoin Treasury bill.
Even more, it’s rare for political opponents to share similar aspirations, as Kamala Harris is also seeking meetings with major players in the crypto space, which you can read more about in another article.
What Additional Details Do We Hear from Trump?
Trump promised that if elected, his administration would retain all the Bitcoin currently held or acquired by the U.S. government, which would form the basis of this proposed reserve.
He drew parallels between this strategic Bitcoin reserve and existing U.S. reserves of gold and oil, suggesting that Bitcoin could soon surpass the entire market capitalization of silver and potentially overtake gold in the future.
Currently, the U.S. government holds approximately 212,000 seized Bitcoins worth around $15 billion, in contrast to its gold reserves valued at $600 billion.
What Do We Hear from Senator Cynthia Lummis?
She introduced a bill instructing the U.S. to create a Bitcoin reserve, the details of which can be found here.
Additionally, there’s a legislative proposal to direct the Treasury to accumulate Bitcoin over a five-year period, aiming to purchase 1 million Bitcoins worth approximately $70 billion.
What Are Leading Investors and Entrepreneurs Saying?
Michael Saylor, founder of MicroStrategy, made an ambitious prediction, suggesting that Bitcoin could reach $49 million per coin by 2045, implying a total market capitalization of nearly $100 trillion.
Elon Musk joined the discussion, warning about the potential “collapse” of the U.S. dollar and the country’s growing debt of $35 trillion, which you can read more about here.
His statements gain weight considering that American banks are reaching new historical highs in the loans they’ve received, which they will need to repay by May 2025. This is compounded by the fact that interest rates remain high, creating significant risks and making repayment challenging.
The picture becomes even broader when considering that traditional investors like Warren Buffett are systematically selling millions in shares of major companies like Apple, and JP Morgan is selling its own shares for the first time in 18 years on a similar scale.
Conclusions
All of this may suggest that the traditional financial system might need to be replaced by a tokenized economy. The slow pace of interest rate reductions could accelerate this shift and simultaneously prepare the ground for crypto adoption, ensuring that leading economies do not lose their influence during this transition.
We may indeed be on the brink of a major resource redistribution. However, unlike authentic crypto enthusiasts and investors, the opportunities and advantages of crypto may once again be used as a means rather than an end.
