BlackRock, the Wall Street asset management giant managing $10 trillion globally, stated that a victory for Donald Trump in the 2024 presidential election could bring new optimism for Bitcoin's strategic reserves. He promised to establish a national strategic Bitcoin reserve for the U.S. before the election. Top venture capitalists have noted that the global race for strategic Bitcoin national reserves has begun, and no country can afford to ignore Bitcoin any longer.
The regulation of the crypto industry in the U.S. over the past two years has been unclear, with the current Biden administration's SEC adopting a 'regulatory alternative to enforcement' approach that has led to numerous lawsuits. However, BlackRock pointed out that this situation may change with Trump's return to the White House.
BlackRock stated that Trump could bring new optimism for Bitcoin's strategic reserves, potentially ushering in a new era of clear regulatory frameworks for asset classes in the U.S.
Top venture capital firm Paradigm recently stated on its blog that multiple sovereign nations have incorporated Bitcoin into their economic and financial strategies. Among them, El Salvador is the most public, as its government holds Bitcoin directly; the Abu Dhabi sovereign wealth fund is actively participating in Bitcoin mining.
Republican Senator Cynthia Lummis has also proposed legislation for a Bitcoin strategic reserve, with predictions from market platform Polymarket estimating that the likelihood of the U.S. establishing a Bitcoin strategic reserve is about 30%.
'The game-theoretic equilibrium of Bitcoin adoption has changed; sovereign nations can no longer ignore Bitcoin. From the perspective of game theory, Bitcoin is like gunpowder, not an iPhone.'
'The great director Christopher Nolan can bear the consequences of not using an iPhone; his deliberate Luddism may even lead to lower relevance and higher creativity. But once gunpowder is discovered, every sovereign nation is forced to adopt it. The same goes for today's artificial intelligence (AI), drones, and other critical technologies.'
Now the Overton window has opened for the U.S. to adopt Bitcoin, and other sovereign nations will not wait. Those sovereign nations that establish Bitcoin reserves early will benefit from significantly better entry prices.
'The race to establish Bitcoin reserves has begun,' Paradigm emphasized at the end of the article.
Dennis Porter, CEO of the Satoshi Act Fund, revealed this possibility, stating to CryptoSlate: 'It is logical that BlackRock supports a Bitcoin strategic reserve; Bitcoin has adjusted the incentive mechanisms of the global economy. Today, BlackRock's support will push related policies in a direction favorable to this technology.'
Porter also revealed that the Trump administration is considering issuing an executive order to formalize Bitcoin's strategic reserves, a move that aligns with the broad stance of the elected president supporting Bitcoin. Before Trump signs the executive order, state governments are accelerating legislation to establish their own Bitcoin strategic reserves.
He believes that the states will play a leading role and sees this push as a decentralized initiative in line with the spirit of Bitcoin.
