MicroStrategy co-founder Michael Saylor has backed the creation of a strategic Bitcoin reserve, coinciding with BTC's new price record.
Saylor's Support and New BTC Record
Michael Saylor expressed his support for the creation of a strategic Bitcoin reserve in a recent social media post. At the same time, Bitcoin's price reached a new record high of $75,889 on the Bitstamp exchange.
Proposal for Strategic Bitcoin Reserve
U.S. Senator Cynthia Lummis initially introduced the proposal in July. The strategic reserve aims to bolster the country's economy by serving as a store of value. The legislation would establish a network of highly secure Bitcoin vaults. Over the span of five years, the U.S. government plans to purchase a total of 1 million Bitcoins (200,000 per year), representing roughly 5% of the cryptocurrency's total supply. The purchases will be made strategically to prevent market disruption. The Bitcoins in the reserve would not be eligible for selling for 20 years. A public cryptographic attestation is needed for transparency, with quarterly reports published on the Department of Treasury's website.
Arguments for and Against the Reserve
The proposal is supported by Bitcoin proponents who believe it could enhance the country's economic security. However, critics argue Bitcoin is not a critical commodity like petroleum, claiming that such a proposal is unrealistic and that mainstream adoption of Bitcoin is not a national security objective for the U.S.
The idea of a strategic Bitcoin reserve draws mixed reactions despite Saylor's support and BTC's record prices.
