President-elect Donald Trump has voiced support for a US bitcoin strategic reserve, similar to the nation's strategic petroleum reserve. The move comes as Bitcoin has surged over 50% since Trump's election. Proponents argue a reserve would diversify US financial holdings and prevent dominance by other countries in the burgeoning cryptocurrency market. Critics, however, warn that Bitcoin's volatility makes it unsuitable for such a role.
This illustration photograph shows a Bitcoin cryptocurrency coin picture displayed on a smartphone beside a screen showing a trading chart in Brussels, on Dec. 17, 2024.to a fresh high days after President-elect Donald Trump reaffirmed support for a U.S.
bitcoin strategic reserve akin to its The world’s largest cryptocurrency has seen its price climb more than 50% since the election of Trump, who voiced Proponents of a potential government stockpile of bitcoin say it could diversify the nation’s financial holdings and prevent other countries from dominating the ascendant digital currency market. Critics warn, however, that the highly volatile asset lacks the type of financial or national security import that would warrant a strategic reserve.How would a bitcoin strategic reserve work?A strategic reserve typically acts as a safeguard against an emergency shortage or another sudden event that would require the government to draw upon its stockpile of a given asset. For instance, the strategic petroleum reserve, or SPR, was established after the Arab Oil Embargo triggered an energy crisis in the early 1970s with devastating consequences for the U.S. economy. The SPR, in turn, provides an emergency source of oil that protects the U.S. against a sudden supply crunch. A bitcoin strategic reserve would help ensure the U.S. plays a significant role in the cryptocurrency market, which supporters view as a fast-growing part of the global financial system, Nik Bhatia, a professor of finance and business economics at the University of Southern California who studies cryptocurrency, told ABC News.“Having some ownership in the network would be natural for the U.S. given its leadership in technology,” Bhatia added, citing the nation’s role in the invention of the internet.Speaking at a pro-bitcoin conference in July, Trump said a U.S
BITCOIN CRYPTOCURRENCY DONALD TRUMP US GOVERNMENT ECONOMY
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Lummis plans renewed push for strategic bitcoin reserve after Trump winPolitical News and Conservative Analysis About Congress, the President, and the Federal Government
Read more »
Prospects for Trump’s Bitcoin strategic reserve are limited- Compass PointProspects for Trump’s Bitcoin strategic reserve are limited- Compass Point
Read more »
The Bitcoin Effect: Polish Presidential Candidate Sławomir Mentzen Promises Strategic BTC ReserveCrypto Blog
Read more »
Bitcoin Mining Company Slashes 27% of Workforce in Strategic Shift Amid DCG Restructuring: ReportCrypto Blog
Read more »
Russian Lawmaker Proposes Strategic Bitcoin Reserve: ReportCrypto Blog
Read more »
Russian Duma Deputy Proposes Creation of Strategic Bitcoin ReserveAnton Tkachev proposed assessing 'the feasibility of creating a strategic BTC reserve in Russia by analogy with state reserve in traditional currencies.'
Read more »