Key Points
- Former U.S. President Donald Trump proposed to establish a strategic Bitcoin reserve.
- There are mixed opinions on the proposal, with some warning of potential hyperinflation and dollar devaluation risks.
In a recent development, former U.S. President Donald Trump has proposed the establishment of a strategic Bitcoin reserve. If implemented, this would place Bitcoin alongside traditional commodities like petroleum, natural gas, and uranium as part of the U.S. national reserves. This initiative is seen as a significant step towards the integration of digital assets into the country’s economic strategy.
Implications of a Bitcoin Reserve
However, the potential creation of such a reserve could influence Bitcoin’s price movement, though it is unclear whether it would lead to a bullish or bearish trend. According to Polymarket predictions, the likelihood of Trump creating a Bitcoin reserve within the first 100 days stands at 29%, reflecting uncertainty within the crypto industry.
Industry Opinions
Several key figures have expressed support for the idea of a strategic Bitcoin reserve. Senator Cynthia Lummis, a prominent advocate for digital assets, has strongly recommended that the U.S. move forward with establishing such a reserve. Additionally, Mathew Siggel, head of digital assets research at VanEck, and Anthony Pompliano, founder and CEO of Professional Capital Management, have also expressed their support.
However, not everyone is in favor of the proposal. Peter Schiff, for instance, has raised concerns that its approval could lead to hyperinflation and make the U.S. dollar worthless. Former US Secretary of the Treasury Larry Summers also questioned the government’s motive behind supporting Bitcoin.
As it stands, there is still uncertainty among investors about whether Trump’s plan will materialize. Meanwhile, according to the latest data from CoinMarketCap, Bitcoin is currently trading at $98,451.73, following a 1.43% decline over the past 24 hours.