Following Donald Trump’s historic victory as the next President of the United States last month, Bitcoin (BTC) and digital asset adoption has gained significant traction. The incoming US President has promised to launch a strategic national Bitcoin reserve, which will add to existing BTC holdings.
Creating a strategic Bitcoin reserve in the United States would kickstart a global movement that would increase overall demand. Furthermore, many countries around the world have debt-to-GDP ratios of over 100 percent, led by Japan and the United States, which is unsustainable in the long term.
US Strategic Bitcoin Reserve Fund
According to Denis Porter, CEO and co-founder of Satoshi Action Fund, there is a high possibility that strategic Bitcoin reserve legislation will be passed at the state level before the incoming Trump administration implements a similar policy. However, Porter noted that Trump could issue an executive order in his first week in office, which could give the federal government a head start.
Porter confirmed that 10 different states in the US have outlined plans to introduce a strategic Bitcoin reserve fund. To facilitate the legislative process, Porter asked the crypto community to donate to the Satoshi Action Fund.
Meanwhile, Bitcoin critic Peter Schiff has warned crypto investors to keep their hopes low for the strategic BTC reserve. Furthermore, Schiff believes that the bill has no major supporters other than Senators Cynthia Lummis and Ro Khanna.
Impact on BTC price
The imminent adoption of Bitcoin by nation-states, amid widespread adoption by institutional investors, will cause a major supply-demand shock. As a result, Porter believes that it will be nearly impossible to buy Bitcoin in the future. Meanwhile, the price of Bitcoin will eventually continue to rise above $100,000.