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- Former President Donald Trump advised against selling the US’s Bitcoin holdings.
- Legislative proposals, including those by Senator Cynthia Lummis and Robert F. Kennedy Jr., suggest increasing government Bitcoin reserves.
Former President Donald Trump has issued a strong warning to the current administration about the potential dangers of selling the United States’ Bitcoin holdings. In a recent interview with streamer and influencer Adin Ross, Trump emphasized the need for the U.S. to remain at the forefront of digital asset innovation. He highlighted the advances made by China in the cryptocurrency and artificial intelligence sectors as a major concern for the U.S.
Trump also expressed admiration for Bitcoin, calling it a modern and valuable type of money. He explained the theory’s possible advantages and acknowledged the intelligence and efforts of its supporters.
Bitcoin Mining Experts Discuss Potential Impact of Trump Administration
Fred Thiel, Chief Executive Officer of Marathon Digital Holdings, participated in Bitcoin 2024 in Nashville saying that Bitcoin mining will be favorable in a Trump regime. Thiel and other specialists in the field noted that the policy of Donald Trump will be positive for the development of the Bitcoin mining industry.
Jason Les from Riot Platforms also noted that the policies that a potential Kamala Harris administration may pursue may not be much different from the current policies of the Biden administration.
According to experts and industry members, large capital injections into energy facilities are necessary to support Bitcoin mining and AI data centers. Such investments could improve the US energy grid and foster future technological innovation.
Trump has proposed using a portion of Bitcoin to address the US national debt, currently at $35 trillion. He stated that a limited supply of Bitcoin can be useful in tackling national debt as the value of Bitcoin is likely to increase in the future. This strategy would move money from the current easily manipulated fiat system to a new one that is limited by mathematical principles.
Legislators Push for Government Bitcoin Reserves
This is not the first time a president or a candidate has made such a proposal. Senator Cynthia Lummis recently submitted a bill under which the US government should buy one million BTC, which equals 5% of the entire BTC supply. At the same time, the independent candidate Robert F. Kennedy Jr. proposed an even more aggressive approach and spoke of building a four-million-bitcoin reserve. These proposals highlight a significant shift towards integrating bitcoin into national economic plans.
The U.S. government currently holds around $11.1 billion in cryptocurrency, including 203,239 bitcoin tokens, primarily from criminal seizures. This represents about 1% of the global bitcoin supply, totaling roughly 19.7 million tokens out of a capped 21 million. It is worth noting that Bitcoin is trading at $56,327.05, registering a 4% increase in the last 24 hours.
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The creation of a government bitcoin reserve could influence the cryptocurrency market significantly. Experts like Mark Connors from Onramp Bitcoin predict that such a reserve might bolster Bitcoin’s price due to its status as a limited commodity. However, there are concerns about the implications for market liquidity. With a large portion of bitcoin held in reserve, the available supply for trading would decrease, potentially impacting investor activity.
