Current:Home > ScamsTrump's bitcoin stockpile plan stirs debate in cryptoverse -Dynamic Money Growth
Trump's bitcoin stockpile plan stirs debate in cryptoverse
View
Date:2025-04-19 02:43:06
"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! (9849)
Related
- Selena Gomez's "Weird Uncles" Steve Martin and Martin Short React to Her Engagement
- Two former Northwestern football players say they experienced racism in program in 2000s
- Ex-State Department official sentenced to nearly 6 years in prison for Capitol riot attacks
- Texas Rangers and their fans celebrate World Series title with parade in Arlington
- Google unveils a quantum chip. Could it help unlock the universe's deepest secrets?
- FTX founder Sam Bankman-Fried convicted of stealing billions from customers and investors
- Beloved Russian singer who criticized Ukraine war returns home. The church calls for her apology
- Cuylle has tiebreaking goal in Rangers’ 6th straight win, 2-1 win over Hurricanes
- Why we love Bear Pond Books, a ski town bookstore with a French bulldog 'Staff Pup'
- Star of David symbols spray-painted on Paris buildings under investigation by authorities in France
Ranking
- Trump issues order to ban transgender troops from serving openly in the military
- NFL coaching staffs are getting more diverse. But one prominent coaching position is not.
- Storm Ciarán brings record rainfall to Italy with at least 6 killed. European death toll rises to 14
- Storm Ciarán brings record rainfall to Italy with at least 6 killed. European death toll rises to 14
- Justice Department, Louisville reach deal after probe prompted by Breonna Taylor killing
- Israel’s fortified underground blood bank processes unprecedented amounts as troops move into Gaza
- Purdue coach Ryan Walters on Michigan football scandal: 'They aren't allegations'
- Robert De Niro’s former top assistant says she found his back-scratching behavior ‘creepy’
Recommendation
Residents worried after ceiling cracks appear following reroofing works at Jalan Tenaga HDB blocks
FTC lawsuit alleges Amazon tried to pull a fast one on consumers with secret price gouging
North Korea is closing some diplomatic missions in what may be a sign of its economic troubles
Meloni pushes change to let voters directly elect Italy’s premier in bid to make governments last
FACT FOCUS: Inspector general’s Jan. 6 report misrepresented as proof of FBI setup
Robert De Niro’s former top assistant says she found his back-scratching behavior ‘creepy’
Former Detroit-area officer indicted on civil rights crime for punching Black man
Tupac Shakur has an Oakland street named for him 27 years after his death