As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of economic shifts and trends. The idea of a strategic Bitcoin reserve by nations is undoubtedly intriguing, but based on historical precedents, I am inclined to approach this proposal with a grain of salt.
In light of increasing discussions about establishing a strategic Bitcoin reserve within the U.S., CryptoQuant’s co-founder and CEO Ki Young Ju has expressed an opposing view on the matter. Looking back at history, he references the strategy the U.S. employed when faced with demands for a gold standard to support his arguments. He posits that if the U.S. economy maintains its growth trajectory, there could potentially be a change in Donald Trump’s stance towards Bitcoin.
Bitcoin Strategic Reserve: The Feasibility
Ki Young Ju stated that economists such as Peter Schiff advocated for a return to the gold standard during the 1990s, much like how Bitcoin supporters advocate for its inclusion in our current strategic reserves today.
At one point, the idea of reinstating a gold standard seemed attractive, but the CEO of CryptoQuant pointed out that historically, the U.S. has found ways to bypass such changes. He emphasized recently that the pursuit of a gold standard is no longer relevant today.
While Ki Young Ju doesn’t rule out the potential for the U.S. to buy Bitcoin, he thinks the scale might be less than what supporters anticipate.
Historically, when the U.S. sensed potential challenges to its economic supremacy on a global scale, gold prices have often risen, and discussions about the gold standard have become more prominent.
In the late 1990s, Peter Schiff championed gold as the true form of money, much like today’s…
— Ki Young Ju (@ki_young_ju) December 28, 2024
Currently, a cryptocurrency consultative body is being assembled to provide insights on the potential uses of this digital reserve. Nevertheless, the CEO of CryptoQuant stated that as the United States economy develops, the necessity to safeguard the US Dollar by investing in Bitcoin may decrease.
Big Bitcoin Bets, Countries Turning Their Backs
Despite several countries advocating for a strategic Bitcoin Reserves, such as the United States, Bhutan, and El Salvador, Japan has made clear its resistance to this concept. Earlier reports from Coingape reveal that Japan intends to prioritize strengthening the foundation of its economic stability rather than adopting a Bitcoin national reserve.
Supporters of the Bitcoin reserve proposal believe it might establish a colossal financial network, capable of addressing escalating debt issues.
Despite nations being slow to embrace it, private and publicly-owned companies have enthusiastically taken up the concept. Companies such as MicroStrategy, MARA Holdings, Metaplanet, and RIOT Platforms have consistently purchased Bitcoin over the last several months.
Among their recent acquisitions, Metaplanet now owns approximately 1,761.98 Bitcoins, valued at around ¥9.5 billion, after purchasing 619.7 Bitcoin.
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2024-12-28 20:29