Key Points
- Marathon Digital Holdings urges the United States to establish a strategic Bitcoin reserve.
- The company has proposed a six-step plan for the U.S. to leverage Bitcoin’s potential.
Marathon Digital Holdings has publicly called for the United States to set up a strategic reserve of Bitcoin.
Why Bitcoin Reserve
In an open letter, the company explained the importance of Bitcoin and its mining infrastructure for economic and geopolitical stability in the evolving global financial scenario. The letter emphasized Bitcoin’s limited supply, decentralized nature, and growing significance as a store of value and medium of exchange.
Marathon drew parallels between Bitcoin and gold, arguing that gold’s effectiveness as a reserve asset is diminishing in the digital age due to its inefficiencies in global transactions and auditing. On the other hand, Bitcoin provides superior portability and scalability, making it a more feasible reserve option for the future.
Marathon, a U.S.-based firm that specializes in Bitcoin mining, aims to bolster and improve the Bitcoin ecosystem by augmenting the blockchain’s computational power through environmentally friendly operations. As of November 24, Marathon holds 33,875 Bitcoin.
Increasing Interest in Bitcoin Reserves
Marathon’s appeal coincides with a surge in global interest in Bitcoin reserves. The letter mentioned Senator Cynthia Lummis’s Bitcoin Act, which suggests that the U.S. government acquire up to one million Bitcoin over the next five years. It also pointed out that the U.S. already holds around 200,000 Bitcoin, lagging behind other countries like China, which holds approximately 190,000.
The letter also underscored the significance of Bitcoin mining infrastructure. Bitcoin mining, the process of validating transactions and securing the Bitcoin network using computational power, known as hashrate, is vital. Marathon contended that controlling a considerable portion of the global hashrate is crucial for ensuring “transaction sovereignty,” which safeguards nations from external interference in financial transactions.
Marathon’s Proposed Plan
Marathon suggested a six-step plan for the U.S. in the letter, which includes creating a Bitcoin reserve, expanding domestic mining operations, developing mining hardware, and setting global standards for decentralized networks. The company cautioned that inaction could leave the U.S. susceptible to geopolitical pressures, especially as nations transition away from dollar dominance towards alternative financial systems.
Marathon Digital emphasized, “U.S. lawmakers should recognize Bitcoin and Bitcoin mining as critical components of the nation’s financial and geopolitical strategy. Just as the U.S. has led in amassing gold reserves, it must now lead in this emerging sector.”