As the 2024 Bitcoin Conference is about to be held, speculation that former U.S. President Trump may blurt out that "Bitcoin will become a U.S. reserve asset" is gradually increasing. Some people are optimistic about the positive impact of relevant news on prices, while others believe that the chance of this coming true is extremely small.
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After Republican presidential candidate Trump expressed strong support for the crypto industry, rumors that Bitcoin will become a strategic asset of the U.S. Treasury Department continue to spread.
Everyone's focus has been on the Bitcoin Conference at 2 pm US time on July 27, when Trump may make another shocking statement about Bitcoin.
Will Bitcoin Become a U.S. Reserve Asset?
Asset Management Company: The U.S. Department of Justice can solve the problem by transferring it to the Treasury Department
In an interview with CNBC this morning, asset manager Bryan Courchesne commented on Bitcoin’s potential to become a U.S. strategic reserve asset.
He believes that although the process of using Bitcoin as a reserve asset is difficult, it is not impossible:
The Justice Department could simply transfer Bitcoin to the U.S. Treasury Department, opening the long-term path for the Treasury to reserve the asset.
He added, “The Department of Justice holds approximately 200,000 Bitcoins, which would make the U.S. government the largest Bitcoin holder after Satoshi Nakamoto.”
Mark Cuban: Inflation and political instability are contributing factors
In addition, billionaire Mark Cuban said that considering geopolitical uncertainty and the decline of the US dollar as a global reserve currency, Bitcoin may really be the final solution:
Imagine what would happen if Bitcoin became a global "safe haven"? This means that Bitcoin may become a means for countries to protect their assets and purchasing power.
He emphasized that the above situation has already occurred in countries with hyperinflation:
If the economy eventually develops to a point we cannot imagine, then Bitcoin may really become a global reserve currency.
VC founder: That’s a great campaign slogan
However, Ari Paul, founder of BlockTower Capital, believes that the chance of Bitcoin becoming a U.S. reserve asset is quite low:
Even if a future president indicated that the United States would not sell its Bitcoin holdings, it would not become the U.S. reserve currency.
He also stated that this proposition is very suitable to become Trump’s campaign slogan:
I think Trump may "talk" about doing this, which would be quite positive for Bitcoin's medium-term time frame.
What will be the impact of Bitcoin becoming a U.S. reserve asset?
Regardless of whether Bitcoin can become a reserve asset in the United States or the world, we can first understand what impact it will have on all levels of the world if this happens.
Huge price benefit
First, after the United States upgrades its large amount of Bitcoin to a reserve asset, it will strengthen the claim of Bitcoin as "digital gold", enhance its economic resilience and stability, and diversify national assets to combat inflation.
At the same time, as one of the world's largest economies, the United States' move will also attract the attention or imitation of new investors and other countries, which will obviously push up its price.
will become a strategic advantage for the United States
According to Trump’s previous statement, the policy against Bitcoin may indirectly help China, Russia and radical communism.
Here, the United States’ embrace of Bitcoin will be seen as a strategic advantage for the country, similar to other scarce commodities such as gold, silver and oil reserves.
Accelerating Crypto Adoption and Regulatory Development
Additionally, the policy may also lead to the introduction of a more comprehensive and favorable crypto regulatory framework, accelerating mainstream adoption of the technology globally.
However, this will also face significant challenges, especially in terms of technical security for the country to store and manage large amounts of Bitcoin.
Can Trump decide America’s reserve assets?
You can rest assured that Trump’s every move does have a major impact on the economy. However, the announcement of Bitcoin as a U.S. reserve asset still requires extensive discussions among economic and financial experts, as well as decisions by the Treasury Department , the Federal Reserve , etc. Proposing government agencies and then having them approved by Congress is actually time-consuming and laborious.
The implication is that the president cannot make this decision unilaterally, so any number of slogans of support can only be regarded as a statement of support.
