It is clear that the support of US officials is appropriate for the price of Bitcoin.
Last year, top US securities regulators approved the launch of regulatory funds that hold cryptocurrency, paving the way for pension funds, donations and other large money managers to plow money into tokens. The Trump administration’s totally corrupt support for the crypto industry encourages them to do so.
“This was basically impossible to think of two years ago,” says Yeshayadav, an associate dean at Vanderbilt University Law School. The round has real institutional support. ”
Many believe prices can still rise. Larry Fink, founder of BlackRock billionaires, the world’s largest asset manager, could reach $700,000 if more sovereign wealth funds consider holding Bitcoin recently He said there is.
Matt Hougan, chief investment officer at Bitwise at Crypto Asset Manager, said “Bitcoin has found a way to adopt the government.” Trump’s support “removed the last existential threat to Bitcoin,” he added.
Now, some lawmakers are pushing for further administration. US Senator Cynthia Ramis, Wyoming, is leading the creation of a strategic Bitcoin Reserve.
Strategic Reserve
Reserve assets are usually important resources that can be used in times of crisis. The US now has emergency oil reserves, including anvils in many countries, while emergency oil reserves that can be used to protect against oil supply shocks.
Lummis says it can use increased token value to reduce US debt. In July, she introduced a bill that required 200,000 Bitcoin to be purchased from the market each year for five years, until the stockpile reached 1 million tokens.
Crypto is largely anonymous, making it extremely difficult for Washington to buy Bitcoin. Criminals and hostile governments can become richer from these purchases.
Daniel Brian, executive director of the non-profit watchdog government surveillance project, said the US government’s interest in crypto was “the national security implications of the types of investors participating in crypto in the first place.” “He says.
“This is a very strange idea,” says Hilary Allen, a professor at Law at the University of Washington, American University. “We need something that doesn’t inflate, something that’s difficult and realistic. What’s ridiculous is that it’s more difficult and unrealistic than Bitcoin,” she adds.
The US government currently holds around 200,000 bitcoins and tokens seized through criminal investigations. Previously, they were selling chunks of auction holdings, but now they hope that the government will resist selling them.
More bullish players like Lumis hope the US will start buying more aggressively. “What’s more (we don’t sell our current stockpile) is a plus,” says Hougan.
Advocates say Bitcoin is an effective reserve asset, as its supply is finite. Due to the algorithm written in the Bitcoin production code, only 21mn coins exist. They believe this rarity will increase its value as holding a coin means it is now worth the future. Then, set up Bitcoin separately from other cryptocurrencies.
