Current:Home > NewsTrump's bitcoin stockpile plan stirs debate in cryptoverse-LoTradeCoin
Trump's bitcoin stockpile plan stirs debate in cryptoverse
View Date:2024-12-23 15:49:45
"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! (4278)
Related
- Five best fits for Alex Bregman: Will Astros homegrown star leave as free agent?
- Kishida promises he’ll take appropriate steps ahead of a Cabinet shuffle to tackle a party scandal
- Eagles' Tush Push play is borderline unstoppable. Will it be banned next season?
- Mega Millions winning numbers for December 8; Jackpot now at $395 million
- Trading wands for whisks, new Harry Potter cooking show brings mess and magic
- The Excerpt podcast: UN calls emergency meeting on Israel-Hamas cease-fire resolution
- Prince William, Princess Kate share a new family photo on Christmas card: See the pic
- Some nations want to remove more pollution than they produce. That will take giving nature a boost
- Wall Street makes wagers on the likely winners and losers in a second Trump term
- A rare earthquake rattled Nebraska. What made it an 'unusual one'?
Ranking
- Trump ally Steve Bannon blasts ‘lawfare’ as he faces New York trial after federal prison stint
- Russian presidential hopeful vows to champion peace, women and a ‘humane’ country
- Ariana Madix Reveals the Real Reason She and Ex Tom Sandoval Haven't Sold Their House
- Petrochemical giant’s salt mine ruptures in northeastern Brazil. Officials warn of collapse
- Secret Service Agent Allegedly Took Ex to Barack Obama’s Beach House
- Tylan Wallace goes from little-used backup to game-winning hero with punt return TD for Ravens
- Biden goes into 2024 with the economy getting stronger, but voters feel horrible about it
- LSU QB Jayden Daniels wins Heisman Trophy despite team's struggles
Recommendation
-
Jason Kelce Jokes He Got “Mixed Reviews” From Kylie Kelce Over NSFW Commentary
-
Biden goes into 2024 with the economy getting stronger, but voters feel horrible about it
-
Guyana agreed to talks with Venezuela over territorial dispute under pressure from Brazil, others
-
Elon Musk restores X account of Alex Jones, right-wing conspiracy theorist banned for abusive behavior
-
Only 8 monkeys remain free after more than a week outside a South Carolina compound
-
Drug lords go on killing spree to hunt down corrupt officers who stole shipment in Mexico’s Tijuana
-
'Everybody on this stage is my in-yun': Golden Globes should follow fate on 'Past Lives'
-
Elon Musk restores X account of Alex Jones, right-wing conspiracy theorist banned for abusive behavior