MicroStrategy is the largest corporate owner of bitcoin, but its co-founder and chairman, Michael Saylor, says another company is poised to become bitcoin’s kingmaker.
“The U.S. government should own the majority of the world’s bitcoin,” Saylor said. Said On Thursday at the Bitcoin 2024 Commentary Desk.
The Bitcoin bull declared the following day that BTC’s market cap will reach $280 trillion by 2024, a growth rate of over 200 times. Predicted Bitcoin’s market cap is expected to surpass $100 trillion, suggesting it could reach $5 million per coin.
Owning the vast majority of Bitcoin mined means the U.S. government holds more than 10.5 million BTC, which is worth $711 billion at current prices. On-Chain DataThe government currently holds 208,898 BTC seized from criminals, totaling $14 billion.
His wishes echo those of independent US presidential candidate Robert F. Kennedy Jr., who said this week he would like to allow the US government to invest in bitcoin on an equal footing with gold. The federal government boasts the world’s largest gold reserves, at 8,134 tonnes, worth $615 billion.
Kennedy’s motivation for such a large allocation was to use it as part of the hard assets that back the U.S. dollar, a sentiment echoed by Saylor.
“You back the dollar by doing things that make economic sense,” Thaler explained, citing the construction of the port of New York City as one such decision that helped bring the U.S. into international trade.
“The future of the country is in cyberspace, and Bitcoin is essentially ‘cyber Manhattan,'” he continued. “The way to back the dollar is to buy Manhattan with a piece of paper and a trinket, before it’s worth hundreds of trillions of dollars.”
Like Kennedy, Donald Trump has recently positioned himself as a crypto ally and said he wants to protect bitcoin miners in the U.S. Both candidates are scheduled to speak at Bitcoin 2024 in Nashville this week.
It’s unclear what current Vice President and Democratic presidential candidate Kamala Harris’s position on cryptocurrencies is as the Biden administration cracks down on domestic crypto companies, but her campaign has reportedly posed questions to prominent crypto advocates like billionaire entrepreneur Mark Cuban. Decryption.
Any candidate seeking to back the dollar with Bitcoin would first need to establish a formal Federal Bitcoin Reserve, a move that would symbolize new legitimacy for the digital asset in the eyes of the nation and likely lead to a reversal of plans to sell off the $14 billion worth of BTC the government already has in reserve.
Brian Korshen, founder of crypto asset management firm DAIM.io, believes such a step, while difficult, is “possible.”
“The Department of Justice has about 200,000 units of bitcoin,” he said in an interview with CNBC this month. “They could just transfer that to the Treasury and have $13 billion worth of bitcoin on their balance sheet.”
“If they transition from random sellers to long-term holders, that could be really good for the sector,” he continued.
If the US were to go a step further and follow Kennedy’s proposed plan, it would need to aggressively acquire $154 billion worth of Bitcoin for four consecutive years.
CryptoQuant said: Decryption It is possible to calculate how such an accumulation strategy would affect Bitcoin’s price: The firm’s “Bitcoin Multiplier” estimates that for every $1 invested in Bitcoin during a bull market, the asset’s market cap increases by $3-4.
“it is, [yearly] “We expect Bitcoin’s market cap to increase by between $460 billion and $615 billion,” said Julio Moreno, head of research. “This is [yearly] Bitcoin price would rise by $23,000 to $31,000, putting the price between $90,000 and $98,000 (assuming today’s prices).
Editor: Ryan Ozawa.
