Trump Pitched ‘Massive’ $280 Trillion Price Bitcoin Reserve To Save The Dollar

Former President Donald Trump, now President-elect, has been pitched an ambitious plan to establish a U.S. Bitcoin reserve, which could theoretically see Bitcoin’s market cap soar to $280 trillion. This proposal comes from Michael Saylor, the founder of MicroStrategy, who envisions this as a means to strengthen the U.S. dollar and manage the nation’s substantial debt.

Trump, during his campaign, spoke at the Bitcoin 2024 conference, where he promised to create a “strategic national bitcoin reserve,” predicting Bitcoin could eclipse gold’s $16 trillion market capitalization. This was further supported by Republican Senator Cynthia Lummis, who introduced the BITCOIN Act to Congress, suggesting the U.S. acquire 1 million Bitcoins over five years to tackle the $35 trillion national debt.

Saylor’s pitch includes a vision of expanding global digital capital markets dramatically, with significant benefits for U.S. investors and potentially driving massive demand for U.S. Treasuries. His framework aims at positioning America as a leader in the digital economy by leveraging Bitcoin’s potential.

The concept has sparked significant debate. On one hand, supporters argue that such a move could legitimize Bitcoin as a reserve asset, potentially leading to a surge in its value and broader acceptance. On the other hand, skeptics, including some economists, warn of the inflationary risks and market volatility associated with Bitcoin, questioning the feasibility and economic wisdom of such a large-scale investment in a cryptocurrency.

This proposal comes at a time when Bitcoin has already seen remarkable growth, surpassing $100,000 per coin, fueled by Trump’s pro-crypto stance and discussions on creating a federal Bitcoin reserve. The idea of a Bitcoin reserve has also caught international attention, with countries like Russia considering similar measures following asset freezes by Western nations.

The debate over a Bitcoin reserve under Trump’s administration highlights the intersection of traditional finance with the burgeoning world of cryptocurrency, setting the stage for potentially transformative policy changes in the U.S. financial landscape.

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