Author:Tina
Editor: Xiaolu
Recently, the crypto market has been affected by negative factors such as the US government's sale of Bitcoin and the Mt. Gox compensation. The price of Bitcoin once fell below $63,000, and the decline of Altcoin was even more terrible.
So, will the US government sell all the bitcoins it holds? How many bitcoins does the US government still hold? Let’s start with the recent Bitcoin Conference.
1. Bitcoin Strategic Reserve Plan
At the recent Bitcoin conference, Trump announced a strategic Bitcoin reserve plan. He stated that once he is elected, the U.S. government will retain 100% of its Bitcoins and will not sell them.
According to statistics from the Arkham platform, the US government currently holds more than 200,000 bitcoins, accounting for almost 1% of the total supply of bitcoins. The United States holds the largest number of bitcoins among all countries.
In addition to the United States, countries such as the United Kingdom, Ukraine, and El Salvador also hold a certain amount of Bitcoin. El Salvador has also upgraded Bitcoin to legal tender and insists on investing one Bitcoin every day.
After Trump announced the strategic reserve plan, U.S. Senator Cynthia Lummis, who attended the recent Bitcoin conference, said she would draft a bill requiring the government to purchase up to 200,000 bitcoins per year for five years, totaling 1 million bitcoins, which would be held for at least 20 years, primarily to repay federal debts, after which no more than 10% of the assets could be sold in any two-year period.
The plan mentions that the reserved Bitcoins can be used to repay federal debts. As we all know, the debt of the U.S. federal government is still very large. If one can hold 1 million Bitcoins, with the Bitcoin price increasing several times each round, it will greatly ease the pressure on Americans to repay their debts. This is a good strategy to repay U.S. debts.
2. Leader in the Crypto Market
The United States is not only an economic and military power, but also remains in a leading position in the crypto market. The United States has the highest proportion of cryptocurrency users, and a large amount of venture capital, talent, and innovation in the crypto market basically come from the United States.
Therefore, the US government’s cryptocurrency policy is affecting related strategies in other countries or regions around the world.
For example, after the US SEC approved the spot Bitcoin ETF, other countries and regions in the world began to follow suit, and Hong Kong has also launched a spot Bitcoin/Ethereum ETF fund.
Similarly, in response to Trump's speech at the Bitcoin Conference, Hong Kong SAR Legislative Council member Wu Jiezhuang said on the X platform on July 28 that Bitcoin and Web3 are important nodes in the development of globalization and should encourage global common development. In addition, in the future, Bitcoin can be considered to be included in the region's strategic fiscal reserves under compliance.
Under the leadership of the United States, more countries or regions will follow the US cryptocurrency policy in the future and vigorously promote the global compliance process of Bitcoin. At the same time, more countries/regions will announce that they will use Bitcoin as a strategic reserve asset.
How did Bitcoin go from being ignored to being a strategic reserve asset?
3. Bitcoin: From Marginal Asset to Strategic Reserve Asset
When Bitcoin was first created, it was just a very niche market and only geeks were playing with it.
But as Bitcoin continues to develop, its value is constantly being discovered, and the tenfold and hundredfold increase has attracted more and more investors to join. Some investors who see the future value of Bitcoin have begun to include it in their own investment portfolios, or even their family's investment portfolios.
As Bitcoin continues to develop, some listed companies have also seen the huge future value of Bitcoin, such as the well-known MicroStrategy.
In 2020, MicroStrategy became the first public company to purchase Bitcoin as a capital allocation strategy, and its co-founder and chairman Michael Saylor is one of Bitcoin's most staunch supporters.
With MicroStrategy's holdings and purchases, the number of Bitcoins currently held by MicroStrategy has reached more than 200,000, almost catching up with Grayscale's holdings. According to Bitcoin Magazine, MicroStrategy will recently raise $2 billion to buy more Bitcoin.
MicroStrategy's strategy saved the company. Its main business was going downhill, but after continuing to buy Bitcoin, not only did the company's stock price soar several times, but the Bitcoin it held also brought considerable profits to the company. Before the launch of the spot Bitcoin ETF, several asset management giants indirectly realized their investment in Bitcoin by purchasing MicroStrategy's stocks.
With the success of MicroStrategy, more and more imitators have followed. For example, Metaplanet, known as Japan's MicroStrategy, was originally a Web3 infrastructure provider. In mid-May, it announced that it would use Bitcoin as a strategic reserve asset, and its stock price soared.
At the end of May, the US medical technology company Semler Scientific also announced that it would use Bitcoin as its main treasury reserve asset and purchased 581 Bitcoins. After the news was announced, the company's stock price soared 30%. At the recent Bitcoin conference, the boss of Semler Scientific said that he would sell more stocks to buy Bitcoin.
MicroStrategy also announced a partnership with Bitcoin Magazine to get more businesses buying into Bitcoin.
At a recent Bitcoin conference, the MicroStrategy boss said:
"On August 10th of this year, we will have been on this path for 48 months. Many companies are trying to imitate chip maker Nvidia, but interestingly, it is easier to imitate MicroStrategy. I have given you the playbook."
It is foreseeable that there will be more "MicroStrategy" in the future, and more companies will choose to add Bitcoin to the company's balance sheet.
Now, Bitcoin's status has been further elevated, and under the leadership of the United States, more countries/regions will use it as a strategic reserve asset.
In short, the development pattern of Bitcoin has undergone tremendous changes. It has gradually grown from an initially marginalized digital currency to a globally renowned basic financial asset, and has gained more and more consensus. In the future, more individuals, families, companies and even countries will regard Bitcoin as an important strategic reserve asset.
PS This article does not constitute any investment advice
