In recent weeks, the idea of the U.S. establishing a Strategic Bitcoin Reserve (SBR) has gradually gained attention. Proposed by Adam Back, CEO of Blockstream, along with U.S. experts and lawmakers, this plan promises to open a new growth cycle for Bitcoin, with the potential to push the value of this cryptocurrency beyond 1 million USD.

What is the Strategic Bitcoin Reserve (SBR)?

The Strategic Bitcoin Reserve, if implemented, would be a Bitcoin reserve fund controlled by the U.S. government, similar to how countries build strategic reserves of gold or oil. This idea is not just a strategic move to protect the U.S. economy but also aims to maintain leadership in the cryptocurrency field, especially as many other countries are also increasing their investments in Bitcoin.

According to Dennis Porter, CEO of Satoshi Act Fund, an organization promoting Bitcoin, the Trump administration is considering signing an executive order to establish a national SBR. Porter revealed that the goal of this order is to prevent states or other countries from getting ahead in passing similar laws.

Specific Plan

  1. Proposal from Senator Cynthia Lummis
    One of the prominent plans related to the SBR is the bill from Senator Cynthia Lummis (R-AZ). Accordingly, the U.S. will purchase a total of 1 million Bitcoins over 5 years, with 200,000 BTC each year.

    This is seen as a long-term strategy to ensure that the Bitcoin reserve is not affected by market volatility. If this plan is approved, it will place enormous upward pressure on the market.

  2. Retaining Seized Bitcoin
    Meanwhile, Trump previously suggested at the Bitcoin 2024 Conference that the U.S. government could retain seized Bitcoins from criminal cases instead of selling them, gradually forming a strategic reserve.

  3. Quietly Buying Bitcoin
    Adam Back emphasizes that any large-scale Bitcoin purchase plan needs to be executed 'very, very quietly.' Publicity would create a FOMO (fear of missing out) effect, causing Bitcoin prices to spike immediately. 'When the news leaks, Bitcoin prices will 'shift instantly',' he said.

Global Effect

This idea not only has an impact within the U.S. Portal, a Bitcoin protocol, has stated that if the U.S. initiates an SBR, other countries will certainly follow suit. This could open up a global race in accumulating Bitcoin, thereby pushing the value of this currency to new heights.

Experts believe that the increase in Bitcoin's value will not only be speculative but also mark a shift in accepting Bitcoin as a strategic asset globally.

Bitcoin's Potential to Reach 1 Million USD

Although the goal of 1 million USD/Bitcoin may sound far-fetched, Adam Back and many other experts believe it is entirely feasible in the current bull cycle if the SBR is actually implemented. However, the current market remains skeptical about the feasibility of pursuing this idea thoroughly.

Any major plan involving the U.S. government's purchase of Bitcoin faces practical issues, from buying and selling on the market without causing price volatility to ensuring a sufficiently large supply. Nevertheless, Adam Back is optimistic that even holding onto seized Bitcoins could have a positive spillover effect on the value of this currency.

Conclusion

The plan to establish a Strategic Bitcoin Reserve in the U.S., if implemented, could create an unprecedented boost for the cryptocurrency market. This is not only a financial decision but also a geopolitical strategy, helping the U.S. maintain its leading role in the era of digital economy.

However, everything is currently still at the proposal and discussion stage. Nevertheless, the mere prospect of a Strategic Bitcoin Reserve (SBR) is enough to spark waves of expectation in the market, with the potential to push Bitcoin far beyond what we ever imagined.