Following the recent US presidential election, Senator Cynthia Lummis announced a strategic nationwide Bitcoin 
$73,968 He once again emphasized his determination to create the reserve.
Bitcoin Law and Purchasing Targets
In July, Lummis introduced a proposed law called the “BITCOIN Act of 2024.” This law calls for the US Treasury Department to purchase one million Bitcoins within five years. This amount corresponds to 5% of Bitcoin’s total supply.
The idea of a strategic Bitcoin reserve could face political challenges in the Republican-dominated House and Senate. This is because there is a cautious approach towards crypto within the GOP. Many Republican senators and representatives think that this investment is not suitable for the United States due to the volatile nature of Bitcoin.
Lummis argues that a Bitcoin reserve could be a hedge against dollar depreciation. According to him, this reserve can reduce the US debt of up to 35 trillion dollars in the long run. According to their estimates, half of the US debt could be paid off by 2045 with Bitcoin reserves.
John Toro, head of trading at Australian digital asset firm Zerocap, stated that there was an increase in Bitcoin prices following the election result in the USA. The crypto community is very excited about the progress of regulations and the possibility of Bitcoin being included in US reserves.
Probability of Occurrence
The necessary laws will need to be adopted to implement this project. However, limited public interest in Bitcoin and the lack of recognition of the technology by the general public may make wide-scale implementation difficult. It is also thought that the proposed one million Bitcoins may be insufficient to reduce US debt.
As a result, for this reserve to be effective, the purchase amount will need to be increased and public support will need to be provided. Otherwise, the strategic impact of the reserve may remain limited.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
