According to PANews, Alabama State Auditor Andrew Sorrell has proposed the establishment of a Strategic Bitcoin Reserve (SBR) to diversify the state’s investment portfolio, enhance its inflation resistance, and strengthen its financial position. Sorrell argues that the long-term success of Bitcoin and other cryptocurrencies is inevitable, highlighting their potential for significant appreciation as a rapidly growing asset class valued at $3 trillion.
Sorrell suggests building the reserve through a dollar-cost averaging strategy over two years to mitigate the risks associated with Bitcoin’s price volatility. He also references the model of the ‘U.S. Strategic Bitcoin Reserve’ proposed during the Trump administration, noting that the United States currently holds 207,189 Bitcoins, valued at approximately $20 billion, with plans to further expand its reserves.
The proposal for the SBR has garnered attention at both state and federal levels, with Florida and Pennsylvania also advancing similar initiatives. Sorrell believes that this move could help state governments address the risk of the U.S. dollar potentially losing its status as the global reserve currency. Additionally, it could serve as collateral for future debt issuance, thereby strengthening the state’s balance sheet. He emphasizes that the Bitcoin reserve should be aimed at long-term holding rather than short-term profit, projecting that Bitcoin could reach a price of $1 million per coin in the future. By Binance News
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