Current:Home > MyTrump's bitcoin stockpile plan stirs debate in cryptoverse -Wealth Navigators Hub
Trump's bitcoin stockpile plan stirs debate in cryptoverse
View
Date:2025-04-13 03:20:35
"Never sell your bitcoin," Donald Trump told a cheering crowd at a crypto convention in Nashville in late July.
The Republican presidential candidate's speech was the latest overture in his effort to court crypto-focused voters ahead of November's election and offered a bevy of campaign promises, including a plan for a state bitcoin reserve.
"If elected, it will be the policy of my administration to keep 100% of all the bitcoin the U.S. government currently holds or acquires into the future," Trump said, adding the funds would serve as the "core of the strategic national bitcoin stockpile."
Indeed, Trump isn't the only one with such a proposal. U.S. Sen. Cynthia Lummis has introduced legislation that would see the U.S. government purchase 1 million bitcoins, around 5% of the total supply, while independent candidate Robert F. Kennedy Jr. has suggested a government stockpile of 4 million bitcoins.
The rise of crypto ETFs:How to invest in digital currency without buying coins
A strategic reserve would be one use for the massive amount of bitcoin held by the U.S. government. The jury's out on what it would be used for, whether it's feasible, or if it's even welcome for the broader crypto market, though.
The U.S. government holds a bumper cache of crypto: around $11.1 billion worth which includes 203,239 bitcoin tokens, according to data firm Arkham Intelligence which said the pile came from criminal seizures, including from online marketplace Silk Road, which was shut down in 2013.
At current levels, the U.S. holds about 1% of the overall global bitcoin supply – which stands at about 19.7 million tokens, according to Blockchain.com. Bitcoin's total supply is capped at 21 million coins.
To compare against big non-state investors, Michael Saylor's Microstrategy holds about 226,500 bitcoin tokens, as per second-quarter results. BlackRock's iShares Bitcoin Trust and Grayscale Bitcoin Trust hold 344,070 and 240,140 tokens respectively, according to data site BitcoinTreasuries.
A government bitcoin stockpile could shore up bitcoin prices.
"It would have a positive impact on price. It would have to because we've never had such a limited supply commodity, albeit digital, assume a new state of a reserve asset," said Mark Connors, head of global macro at Onramp Bitcoin.
More:Top 10 cryptocurrencies of 2024
Yet such a reserve also means fewer tokens for crypto investors to trade with and could leave them exposed if the government ever sold part of its reserves.
"RFK talked about having 19% of bitcoin, the same amount of the gold supply – I can't imagine a single bitcoiner would be happy about that," Connors added.
Governments besides the United States also boast bumper hoards of bitcoins, with BitcoinTreasuries reporting China is the second largest government holder, with 190,000 coins.
'A lot to figure out'
While the prospect of a national bitcoin reserve is uncertain, crypto watchers are nonetheless pondering what form it could take.
Connors suggested the Federal Reserve could manage the reserves for the Treasury Department, as it does with gold. On the other hand, the stockpile could be more akin to the Strategic Petroleum Reserve, where both the president and Congress have varying amounts of control, according to Frank Kelly, senior political strategist at asset manager DWS Group.
"There's a lot to parse and figure out there," Kelly said.
There's also an irony that jars with many true bitcoin believers: the digital asset intended to be decentralized and free of government control becoming part of a state reserve.
Regardless of what happens with a bitcoin stockpile, many market players are happy enough to see crypto becoming a significant campaign talking point.
"There's a general view in the industry that both parties are paying much more attention to digital assets," said Rahul Mewawalla, CEO of Mawson Infrastructure Group which operates data centers for bitcoin mining.
"The expectation is that will continue post-November."
veryGood! (1)
Related
- Former Syrian official arrested in California who oversaw prison charged with torture
- Rock & Roll Hall of Fame ceremony live this year, with Elton John and Chris Stapleton performing
- 4 environmental, human rights activists awarded ‘Alternative Nobel’ prizes
- Mexican army sends troops, helicopters, convoys in to towns cut off by drug cartels
- Appeals court scraps Nasdaq boardroom diversity rules in latest DEI setback
- Murder suspect mistakenly released captured after 2-week manhunt
- Half of Nagorno-Karabakh’s population flees as the separatist government says it will dissolve
- 'The truth has finally set him free.': Man released after serving 28 years for crime he didn't commit
- Meta releases AI model to enhance Metaverse experience
- Judge Tanya Chutkan denies Trump's request for her recusal in Jan. 6 case
Ranking
- Hackers hit Rhode Island benefits system in major cyberattack. Personal data could be released soon
- 2 accused of false Alzheimer’s diagnoses get prison terms for fraud convictions
- Food prices are rising as countries limit exports. Blame climate change, El Nino and Russia’s war
- Slightly fewer number of Americans apply for jobless benefits as layoffs remain rare
- Sarah J. Maas books explained: How to read 'ACOTAR,' 'Throne of Glass' in order.
- NASCAR to return $1 million All-Star race to North Wilkesboro again in 2024
- Did AI write this film? 'The Creator' offers a muddled plea for human-robot harmony
- Israel reopens the main Gaza crossing for Palestinian laborers and tensions ease
Recommendation
Retirement planning: 3 crucial moves everyone should make before 2025
Jury to decide fate of delivery driver who shot YouTube prankster following him
Ringo Starr on ‘Rewind Forward,’ writing country music, the AI-assisted final Beatles track and more
Jury to decide fate of delivery driver who shot YouTube prankster following him
Charges tied to China weigh on GM in Q4, but profit and revenue top expectations
Traffic deaths declined 3.3% in the first half of the year, but Fed officials see more work ahead
Spotted lanternfly has spread to Illinois, threatening trees and crops
A sus 22 años, este joven lidera uno de los distritos escolares más grandes de Arizona