Clearly, the support of US officials was good for the price from bitcoin.
Last year, and top OUR securities regulator approved and run of regulated funds posture and Crypto currency, paving and way for pension funds, assignment and other large money managers to plow money in and sign. AND Trump administration full of throat support of and crypto industry There is encouraged them to make so.
“This was basically unthinkable from two years ago,” says Yesha Yadav, a dean’s associate at the Vanderbilt University Law, adding that before Trump’s return to Washington, Bitcoin’s price “encouraged news, encouraged him by excitement and this time has encouraged excitement And this time the district is true institutional support. “
Many believe the price can still be higher. Larry Fink, the founder of billionaire Blackkrock, the world’s largest asset manager, recently said that if more sovereign wealth funds were considered to have Bitcoin, that could reach $ 700,000.
Matt Hougan, Chief Investment Director at Crypto Asset Manager Bitwise, says “Bitcoin found a way to cooperate the Government.” Trump’s support “removed the last existential threat of Bitcoin”, Adds.
Now, some legislators push the administration to go further. Cynthia Lummis, US Senator for Wyoming’s, leads to the creation of a strategic Bitcoin reserve.
Strategic reserve
Spare assets are usually a critical resource that can be used in crisis times. The US currently have an emergency oil reserve that they can use to protect against oil supply shocks, while many countries have Gold reserves.
Lummis says a growing token value could be used to reduce American debt. In July, she introduced an account that wanted to get the US to buy 200,000 bitcoins from the market a year to five years until stocks reach 1mn tokens.
Because Crypto is mostly anonymous, the monitoring of Washington buys Bitcoin will be extremely difficult – criminals and enemy governments could be enriched with these purchases.
Danielle Brian, Executive Director of the Government Supervisory Project, a non -profit guardian, says that the interest of the US Government for cryptocurrencies raises significant “Implications on national security [because] a type of investor who primarily participate in cryptocurrencies. “
“It’s a very strange idea,” says Hilary Allen, a professor at the American University of Washington College of Law. “We need something that won’t be inflated, something difficult and really in reserve. What is funny is that nothing can be less difficult or really from bitcoin,” ” Adds.
The US government currently owns nearly 200,000 bitcoins, a token that she seized with criminal investigations. Earlier sold pieces of his auction stakes – as much as they hope the government will now resist sale they are excluded.
More bull players, like Lummis, hope that now it will start actively buying more, which could stimulate bitcoin price higher. “Any more than more than [not selling the current stockpile] will be a plus, ” says Hougan.
Proponents say Bitcoin would be an effective spare asset because its supply is final. Only 21 million coins will ever exist because of the algorithm written in the Bitcoin production code. They believe that this scarcity adds the value because now holding coins means that in the future they will be worth more – and stands out Bitcoin besides other crypto currency.
