According to popular MicroStrategy CEO Michael Saylor, the United States should ditch its gold reserves and buy Bitcoin. The vision of shared strategic reserves does not exist in the conception of this popular entrepreneur and evangelist of the leading cryptocurrency. In his opinion, any investment in assets other than BTC represents a waste of capital.
In a post on his X account, the crypto enthusiast shared a snippet of a recent interview in which he talks about BTC. In his words, Bitcoin is a superior investment to real estate and stocks. “ There is no single company or piece of real estate that you can own for a longer period of time than Bitcoin ,” he said.
The businessman's idea is to monetarily disarm US rivals such as Russia and the mighty China. In his view, these countries could do a lot of damage by dumping gold, given that they also possess great wealth. In the meantime, the US could do the same to forestall possible threats from these nations.
He stresses that by selling the hoarded gold, the United States could buy up to 5 million bitcoins. With such a move, he says, the United States' enemies would be monetarily disarmed and unable to do any harm.
The United States should buy #Bitcoin and sell Gold.
Is buying Bitcoin a matter of national security?
The move to ditch gold and buy Bitcoin with those funds would cause the enemies’ assets to plummet. Meanwhile, US assets would gain enormous value, as this bold move would force China, Russia, and other countries to buy up large masses of BTC and create further scarcity.
Thus, acquiring BTC is a matter of national security within the scheme envisioned by Saylor. The businessman's proposal was soon met with criticism from detractors of cryptocurrencies. It should not be overlooked that there is a rivalry between supporters of gold and BTC that dates back several years.
Peter Schiff, a leading gold advocate and a staunch Bitcoin hater, was quick to respond to Saylor’s post. “ If the US sells its gold to buy 25% of bitcoins, driving the price of gold to zero, how will it be able to buy 25% of bitcoins? ” he wrote wryly.
Basically, if the sale of gold from the world's largest reserves were to begin, the price would plummet within minutes. A stampede would cause large holders to immediately exit their positions in the metal. Thus, when the sales were over, the US would have no money to buy BTC. On the other hand, the result is that China and Russia would be able to buy a lot of gold at a low price and the US would be left with empty strategic reserves, according to Schiff's reasoning.
