The chair of MicroStrategy, Michael Saylor, has proposed using a Bitcoin reserve to settle the US national debt in an interview with CNBC.
Source: Moneycontrol
Key Points:
- Michael Saylor suggests a five-year strategy to reduce U.S. debt with one million Bitcoins.
- According to Saylor, the United States’ debt might be reduced by $16 trillion if Bitcoin were held as a reserve.
- Senator Cynthia Lummis, who has introduced a bill permitting large-scale Bitcoin purchases, supports the initiative.
- According to Saylor’s “Trump Max” strategy, purchasing four million Bitcoins would have an impact of $81 trillion.
Saylor claims that purchasing one million Bitcoins over the course of the following five years would settle $16 trillion, or 45%, of the nation’s debt. This is a rather audacious proposal that shows the extent of Bitcoin’s hedging. According to Saylor, the US economy would benefit from adopting digital currency.
Michael J. Saylor Former CEO of MicroStrategy (Source: Cryptonary
According to Saylor, “one of the best ways to secure America’s future could be a Bitcoin reserve.” A Bitcoin reserve would boost national wealth and stabilize the dollar. The mounting requests for a federal Bitcoin strategy are drawing a lot of attention to his plan in the cryptocurrency industry.
Senator Lummis Supports Saylor’s Proposal with New Law
Saylor’s idea is not only his own; it is also gaining political traction. Senator Cynthia Lummis, a prominent Bitcoin supporter, sponsored a bill. The law proposes for the United States to buy one million Bitcoins over a five-year period.
Cynthia Lummis United States Senator (Source: The Crypto Times
She also suggested funding this enormous Bitcoin purchase using a portion of the Federal Reserve’s gold reserves.
Former President Donald Trump has asked about the concept of a Bitcoin Reserve, which has increased the momentum. He advocated for the U.S. government to hold 200,000 Bitcoins as a strategic asset during the Bitcoin 2024 conference.
The “Trump Max” Scenario: Saylor’s Highest Aspirations
According to Saylor, in a “Trump Max” scenario, the US would purchase four million Bitcoins, for a total return of $81 trillion. He promoted this as the best—albeit absurd—way to increase the prosperity of the country. “We may witness an economic revival if the Trump administration fully embraces Bitcoin,” Saylor stated. “A Bitcoin reserve would transform America’s financial system.”
Saylor cites past US government purchases of critical assets, such as gold, oil, etc., that have benefited the economy greatly. This is a “reasonable” strategy to maintain US financial dominance in the twenty-first century. He stated, “Nations purchase strategic assets—that’s what they do.” “Bitcoin expands that upon.”
