In a recent presentation at the Cantor Crypto, Digital Assets & AI Infrastructure Conference in Miami, MicroStrategy Executive Chairman Michael Saylor expressed his belief that the United States government should, and will, create a strategic reserve of Bitcoin (BTC). This bold prediction comes amidst growing interest from lawmakers and officials in the potential benefits of a national cryptocurrency stockpile.
The “Biggest Deal of the 21st Century”
Saylor’s enthusiasm for a US Bitcoin reserve was palpable during his Miami presentation. He described a bill proposed by Senator Cynthia Lummis (R-Wyo.), which would increase the government’s current holdings of approximately 200,000 BTC to a staggering one million tokens over five years, as potentially “the biggest deal of the 21st century.”
The potential returns, according to Saylor’s calculations, could be astronomical. If the Lummis bill were to pass in its current form, he estimates that the US could stand to gain $16 trillion from the strategic purchase of one million Bitcoin. In what he dubs the “Trump Max” scenario, involving the acquisition of four million BTC, Saylor projects a mind-boggling $81 trillion return on investment.
Historical Precedents for Strategic Asset Purchases
Saylor is quick to point out that the concept of strategic asset purchases by the US government is far from unprecedented. He cites numerous historical examples, including:
- The acquisition of Manhattan in the 17th century
- The Louisiana Purchase in 1803
- The purchase of California and Alaska in the 19th century
Each of these acquisitions, Saylor argues, resulted in multi-trillion dollar returns for the nation. Other strategic purchases throughout US history have included commodities such as gold, oil, grain, and helium.
“It’s been done before, it’s a very simple idea – figure out where value is going to be, go buy it cheap, and hold it. You’re a nation-state, this is what nation-states do. … Bitcoin is the manifest destiny of the United States.”
– Michael Saylor
Growing Support for a National Bitcoin Reserve
Saylor believes that key figures in the US government are beginning to grasp the potential benefits of a strategic Bitcoin reserve. He specifically cites the “Trump administration” and Senator Lummis as proponents of the idea, stating confidently:
“I think the Trump administration gets it, I think Senator Lummis gets it … This is why it’s going to happen.”
– Michael Saylor
With Republicans poised to take control of both the Senate and the House of Representatives in the upcoming midterm elections, the likelihood of the Lummis bill passing in some form appears to be increasing. This shift in political power, combined with the growing mainstream acceptance of cryptocurrencies, could pave the way for a historic move by the US government into the realm of digital assets.
Implications and Potential Impacts
The creation of a US strategic Bitcoin reserve would likely have far-reaching implications for both the cryptocurrency market and the global financial system as a whole. Some potential impacts could include:
- A significant increase in the price and mainstream adoption of Bitcoin
- Increased legitimacy and stability for the cryptocurrency market
- A shift in global economic power dynamics
- Potential geopolitical tensions with countries that have already adopted Bitcoin as legal tender, such as El Salvador
As the debate surrounding a potential US Bitcoin reserve continues to unfold, it remains to be seen whether Saylor’s bold predictions will come to fruition. However, one thing is certain: the concept of a national cryptocurrency stockpile is no longer a fringe idea, but rather a serious topic of discussion among policymakers and financial experts alike.
As the world watches and waits, the question on everyone’s mind is not if, but when the United States will take the plunge and embrace Bitcoin as a strategic national asset. According to Michael Saylor, that time may be sooner than we think.
