‘The US will profit 81,000 billion USD if it reserves 4 million Bitcoin’

In July, as part of his election campaign, Donald Trump assured a crowd of cryptocurrency enthusiasts at the 2024 Bitcoin Conference that if elected, he would create a “national strategic Bitcoin reserve”. and turn America into the “cryptocurrency capital of the world”. He also said he wants Bitcoin (BTC) to be created in the US and if it skyrockets, they will become the leading country.

Shortly thereafter, Senator Cynthia Lummis presented a bill to use funds from the US Federal Reserve (Fed) and the Department of Treasury to purchase up to one million tokens for reserve purposes. This amount will help the US become the government that owns the most BTC in the world.

Although the US building a Bitcoin reserve is currently just an idea and not a specific plan, Michael Saylor – Executive Chairman of the company that owns the most digital currencies in the world MicroStrategy – thinks that the above proposal should be and will be done. “This is the biggest deal of the 21st century,” he assessed.

The idea of ​​the US buying strategic assets is not new, similar to when the country’s government acquired Manhattan, Louisiana, California and Alaska. All of which bring in trillions of dollars in profits. There have also been a number of other strategic reserve transactions made in the country’s history such as gold, oil, grain and helium.

“The idea is extremely simple: find out where the value will be, buy it cheap and hold. That’s what countries do,” this leader summarized.

He affirmed that Bitcoin is the manifest destiny for America and the Trump administration understands that. Therefore, the US stockpiling BTC will happen.

If Sen. Lummis’s bill passes as a draft, it will have a better chance of a Republican majority in the Senate and House next year. This cryptocurrency expert predicts that the US will profit about 16,000 billion USD from buying 1 million BTC. According to the “Trump Max” scenario when the government buys 4 million BTC, profits could be up to 81,000 billion USD. Saylor believes that 4 million Bitcoin would be most reasonable.

Recently, Senator Cynthia Lummis said she believes the proposed national Bitcoin reserve bill can be passed in the first 100 days after Donald Trump takes office. According to her, this bill will improve the US financial system and strengthen the country’s leadership position in the field of cryptocurrency.

Meanwhile, Michael Saylor’s comments also have weight as the BTC hoarding strategy has brought his business to a new turning point. MicroStrategy was founded 35 years ago and has remained active in the software industry for most of its time. Last year, this company’s stock increased 337%, reaching the top of the strongest in the US with a group of companies with a capitalization of 5 billion USD or more. This increase is even larger than Nvidia (234%) and Meta (194%).

However, unlike other technology companies whose stocks have increased thanks to improved market share and revenue, MicroStrategy attracts investors entirely thanks to Bitcoin. The company started buying BTC in mid-2020, betting the cryptocurrency would help it survive in a time of fierce competition.

At that time, their cash and short-term investments were more than 530 million USD. Saylor realized this amount of cash was almost sitting idle, because interest rates were low. Therefore, he wants to invest to make the best use of them. After considering, between stocks, precious metals and Bitcoin, he chose digital currency.

“We chose Bitcoin because it is considered digital gold. It is smarter, stronger and faster than gold,” he said in the first business results announcement after announcing the Bitcoin strategy. This company then borrowed billions of dollars, even issuing more shares, to have money to buy Bitcoin.

Last week, this business announced that it had purchased an additional 27,200 BTC while the market price continuously peaked, bringing its total holdings to 279,420 units. Thus, they own nearly 24.7 billion USD in digital currency at current prices. This morning, Bitcoin dropped more than 2% to around 88,300 USD per coin.