Michael Saylor’s Bold Proposal: Why the US Should Buy 20% of Bitcoin’s Supply.
Michael Saylor, a prominent Bitcoin advocate and founder of Strategy, recently urged the United States to purchase 20% of Bitcoin’s total supply. Speaking at CPAC in Washington D.C., Saylor emphasized the strategic importance of this move, claiming that acquiring such a massive share of Bitcoin would not only secure cyberspace dominance but also bolster America’s lending power for the next century.
The motivation behind Saylor’s idea stems from Bitcoin’s rising status as a financial asset. He contended that by controlling 20% of Bitcoin, the United States could use its position to have enormous influence over global finance. In practice, this would imply that the US government would need to buy around 3.9 million Bitcoin in addition to its present holdings of around 207,000 BTC.
Also Read: sam-bankman-fried-speaks-from-prison-mainntains-inocence-and-blames-ftx-collapse-on-legal-advisors
At today’s prices, this would be a massive investment worth approximately $392 billion. While this is a significant investment, Saylor believes that the possible financial and geopolitical gains outweigh the costs. By establishing such a reserve, the United States may strengthen its position in the fast changing world of digital currencies and blockchain technology.
Saylor’s perspective is that of long-term strategy. He thinks that controlling a big share of Bitcoin’s supply might protect against the hazards of competing states adopting digital currencies. According to him, this will ensure that the United States remains at the forefront of financial innovation, retaining its worldwide leadership position.
Interestingly, while Saylor’s suggestion is daring, it is not without criticism. Some argue that the government’s large-scale purchasing of Bitcoin may result in market manipulation or volatility. Others are concerned about the ramifications for individual investors and the broader crypto ecosystem, where decentralisation is a core principle.
Despite these problems, the concept of a national Bitcoin reserve is gaining popularity in some circles. Senator Cynthia Lummis of Wyoming has sponsored legislation encouraging the United States to accumulate Bitcoin in a more conservative manner. This implies that, while Saylor’s 20% objective is ambitious, the larger discussion regarding the United States and Bitcoin is gaining traction.
As the United States government grapples with the role of cryptocurrency in the financial system, Saylor’s proposal for a Bitcoin reserve is a radical step forward in the continuing debate about the future of money. It remains to be seen whether the United States will follow through on this vision, but Saylor’s bold position will undoubtedly inspire greater discussion about Bitcoin’s potential as a reserve asset for states around the world.
