Key Points
- Former U.S. President, Donald Trump, proposed the creation of a strategic Bitcoin reserve.
- The proposal has drawn both support and criticism from various industry figures.
Former U.S. President Donald Trump has made news by suggesting the establishment of a strategic Bitcoin (BTC) reserve.
This innovative proposal would place Bitcoin on par with traditional commodities such as petroleum, natural gas, and uranium as part of the U.S. national reserves.
Implications of Bitcoin Reserve
The proposed Bitcoin reserve could have an impact on Bitcoin’s price, although the nature of this impact, whether positive or negative, is yet to be determined.
The probability of Trump creating a Bitcoin reserve within his first 100 days stood at 29%, according to predictions from Polymarket.
The current trend indicates a cautious optimism among investors, with less than half betting on the establishment of the reserve. This reflects the overall uncertainty within the crypto industry.
Industry Reactions
Several key figures have shown support for the idea of a Bitcoin reserve. Senator Cynthia Lummis, a well-known advocate for digital assets, has strongly recommended the U.S. to establish such a reserve.
Mathew Siggel from VanEck and Anthony Pompliano, CEO of Professional Capital Management, have also voiced their support for the proposal.
However, not everyone agrees with the proposal. Peter Schiff has raised concerns that the approval of the proposal could have implications for the U.S. dollar and Bitcoin.
Former US Secretary of the Treasury Larry Summers questioned the government’s rationale for supporting Bitcoin.
As of now, the future of Trump’s plan is uncertain. As of the latest data, Bitcoin is trading at $98,451.73 following a 1.43% decline over the past 24 hours.
