Michael Saylor’s Bold Bitcoin Proposal
Michael Saylor, the co-founder of MicroStrategy, believes the US government should own the majority of Bitcoin. MicroStrategy is already the largest corporate owner of Bitcoin, but Saylor thinks the US should be the biggest Bitcoin holder. At the Bitcoin 2024 commentary desk, Saylor said, “The U.S. government should own the majority of the Bitcoin in the world.”
A Big Prediction for Bitcoin’s Future
Saylor is very optimistic about Bitcoin. He said that by 2024, Bitcoin’s market cap will hit $280 trillion, which is more than 200 times its current value. He has also predicted that Bitcoin’s market cap could go over $100 trillion, meaning each Bitcoin could be worth $5 million.
The Numbers Behind the Proposal
For the US government to own the majority of all Bitcoin, it would need to hold over 10.5 million BTC. At current prices, this would be worth $711 billion. Right now, the US government owns about 208,898 BTC, worth $14 billion. These Bitcoins were seized from criminals.
Similar Ideas from Robert F. Kennedy Jr.
Saylor’s idea is similar to that of Robert F. Kennedy Jr., an independent US presidential candidate. Kennedy said he wants the US government to have as much Bitcoin as it does gold. The US government has the largest gold reserves in the world, with 8,134 metric tons worth $615 billion.
Using Bitcoin to Back the Dollar
Kennedy believes that Bitcoin could be part of a group of hard assets backing the US dollar. Saylor agrees. He said, “You back the dollar by doing something economically rational.” He gave an example of how building the port of New York City helped the US engage in international commerce. He believes that the future of the country is in cyberspace and called Bitcoin “cyber Manhattan.”
Trump and Other Candidates’ Views on Bitcoin
Donald Trump, a former president, has recently shown support for Bitcoin. He wants to protect Bitcoin miners in the United States. Both Trump and Kennedy spoke at the Bitcoin 2024 event in Nashville. The views of current Vice President Kamala Harris on cryptocurrency are not well known, but the Biden administration has been tough on crypto firms. However, Harris’s team is reportedly reaching out to prominent crypto advocates like Mark Cuban.
Establishing a Federal Bitcoin Reserve
For any candidate to back the dollar with Bitcoin, they would need to create a formal US Bitcoin reserve. This would show that digital assets are legitimate in the eyes of the state. It would also mean not selling any of the $14 billion worth of Bitcoin the government currently holds. Bryan Courchesne, founder of crypto wealth manager DAIM.io, said this step is possible but difficult.
Moving Bitcoin Holdings to the Treasury
Courchesne suggested that the Justice Department, which holds about 200,000 units of Bitcoin, could move these to the Department of Treasury. This would put $13 billion worth of Bitcoin on the Treasury’s balance sheet. He believes that if the government moves from being a seller to a long-term holder of Bitcoin, it could be very positive for the cryptocurrency space.
The Financial Impact of a US Bitcoin Reserve
If the US followed Kennedy’s plan, it would need to buy $154 billion in Bitcoin every year for four years. This buying could have a big impact on Bitcoin’s price. According to the “Bitcoin multiplier” estimate, every $1 invested in Bitcoin increases its market cap by $3 to $4 during a bull market. This means that the yearly increase in Bitcoin’s market cap could be between $460 billion and $615 billion. This would result in a yearly Bitcoin price increase of $23,000 to $31,000, putting the price of Bitcoin between $90,000 and $98,000.
Why Bitcoin Could Be a Good Investment for the US
Saylor and others believe that owning Bitcoin could be a smart move for the US. Bitcoin is seen as a valuable digital asset, and owning a large amount could give the US a strong position in the global financial system. As Bitcoin becomes more valuable, it could also provide significant financial returns for the country.
Challenges and Considerations
However, there are challenges to this plan. Establishing a federal Bitcoin reserve would require changes in policy and new regulations. There would also be logistical challenges in buying and storing such a large amount of Bitcoin. Additionally, the volatility of Bitcoin’s price could be a concern for some policymakers.
The Future of Bitcoin in the US
The idea of the US government owning the majority of Bitcoin is ambitious. It reflects the growing interest and acceptance of Bitcoin as a major financial asset. As more influential figures like Michael Saylor and Robert F. Kennedy Jr. advocate for Bitcoin, it could lead to significant changes in how digital assets are viewed and used in the US.
The Role of Cryptocurrency Regulations
The Biden administration’s crackdown on crypto firms shows that there is still a lot of uncertainty around cryptocurrency regulations in the US. Future administrations will play a crucial role in shaping the landscape for digital assets. Whether the US will become a major Bitcoin holder depends on the decisions made by current and future leaders.
Conclusion: A New Era for Bitcoin?
Michael Saylor’s proposal for the US government to own the majority of Bitcoin is a bold vision for the future. It highlights the potential of Bitcoin to be a significant part of the global financial system. As discussions around Bitcoin and other digital assets continue, the US could be at the forefront of this new financial era. The decisions made today could shape the financial landscape for years to come.
