image credit:wikipedia
Never sell your bitcoin,” Trump told a roaring crowd at a Nashville crypto convention in late July.
The Republican presidential candidate’s address was the latest attempt to lure crypto-focused voters ahead of November’s election. He promised a state bitcoin reserve.
“If elected, it will be the policy of my administration to keep 100% of all the bitcoin the U.S. government currently holds or acquires into the future,” Trump stated, adding that it would be the “core of the strategic national bitcoin stockpile.”
Trump isn’t alone in proposing this. Legislator Cynthia Lummis proposes that the U.S. government buy one million bitcoin, 5% of total supply, while independent candidate Robert F. Kennedy Jr. proposes four million.
The large bitcoin holdings of the U.S. government might be used as a strategic reserve. It’s unclear what it would be used for, if it’s possible, or if the crypto market would accept it.
Arkham Intelligence, a data provider, reported that the U.S. government possesses $11.1 billion in crypto, including 203,239 bitcoin tokens, from criminal seizures, including Silk Road, which was shut down in 2013.
Blockchain.com estimates that the U.S. possesses 19.7 million bitcoins, or 1% of the global supply. Bitcoin’s quantity is limited to 21 million.
According to second-quarter figures, Michael Saylor’s Microstrategy has 226,500 bitcoin tokens, compared to big non-state investors. BitcoinTreasuries reports 344,070 and 240,140 tokens in BlackRock’s iShares Bitcoin Trust and Grayscale Bitcoin Trust, respectively.
A government bitcoin hoard could boost prices.
“Price would improve. It must since we’ve never had a digital commodity with such a limited quantity become a reserve asset “Mark Connors, head of global macro at Onramp Bitcoin.
Comment Template